Home buying has its own set of challenges. For that reason, mortgage planning is the best course of action since it is one of the most critical financial decisions you can make in your lifetime. You could be a first-time homebuyer or a real estate investor with plenty of experience under your belt. Yet, one thing is for sure: the mortgage process is a challenging and complex process that can feel quite stressful at times.
However, a mortgage planner for Malvern, PA homebuyers can be the best option. They are well aware of the challenges, such as dealing with traditional lenders and even online platforms that only offer “one-size-fits-all” solutions. Penn Street Mortgage does what seems like an unconventional approach. They can learn about your goals, find the best mortgage terms, and ensure that your homebuying journey goes off without a hitch.
What Is A Mortgage Planner?
A mortgage planner is a licensed professional who can help build a mortgage solution for you. The most critical element they are looking for is your entire financial picture, rather than just your immediate borrowing needs. These mortgage brokers for Malvern and the surrounding towns don’t just offer cookie-cutter plans. They take a look at your long-term financial goals and build a strategy around them. If you are an investor, they can also take a look at tax considerations, investment plans, and risk tolerance.
What sets one apart from the others?
The thing that we always mention when working with clients is that no two mortgage planners are the same. So, how does one set itself apart from the many others out there with the same goal they’re looking to achieve? Here are some characteristics to look out for:
- They analyze your entire financial profile, going beyond just your credit score.
- Provide you with guidance on mortgage types, term lengths, and strategies for repayment.
- Coordinate with other professionals, such as real estate agents, CPAs, and other financial advisors.
- Assist you in planning for refinancing, home equity use, and retirement (if any of these are your goals).
- Customize mortgage advice for business owners or real estate investors.
Having a Malvern mortgage planner who does these things can be a breath of fresh air compared to the ordinary options you may be working with. Yet, the best one can help you not only buy a house but also create a bright financial future.
How A Personalized Mortgage Strategy Compares To One-Size-Fits-All Choices
Many homebuyers may be making the wrong decisions when it comes to this process. For example, they may settle for the lowest advertised rates or what a bank “pre-approves”. If you think the cheapest mortgage is the best option, you may be surprised to learn that it isn’t. That’s because the best option you can afford can have long-term benefits. So it pays to not go after the cheapest option, but also a step or two up for the purpose of the benefits you can enjoy.
A mortgage planner can even zoom out and take their planning abilities to the next level. This includes asking you some key questions, including:
- Are you planning on staying in your home for 5, 10, or even 30 years?
- Are you planning to start or grow a family?
- Are you self-employed or investing in commercial real estate in Malvern and the nearby area?
- Do you need cash flow for your business or retirement savings?
These are just example questions that a mortgage planner can ask you. However, the questions may also differ depending on certain factors, such as whether you are a residential homebuyer or a real estate investor. Nevertheless, a personalized mortgage strategy is created based on the answers to these questions and tailored to fit you and only you.
What Are The Key Benefits of Working with a Mortgage Planner?
Now that you have a good idea of what to look for in a mortgage planner for Malvern homebuyers and investors, it’s time to focus on the key benefits. Choosing the right one can yield long-term benefits that will make life and your financial future look even better. Here’s a look at what those are:
Strategic loan matching
One or two loan products aren’t going to cut it for most homebuyers. Instead, the best mortgage planner can match you with options that are the best fit for you and your goals. This can include fixed-rate, FHA, VA, ARM, or even a jumbo loan. What you’re offered is customized solutions, not a cookie-cutter generic one.
Better long-term financial health
A high-quality planner is someone who looks ahead to your long-term financial health. By doing this, they look at more than just the debt-to-income ratio. They also look at other impacts that pertain to your tax liability, investment strategy, future net worth, and other relevant factors.
Faster, smarter decision-making
Deep industry knowledge and a strong network are key assets that the best mortgage planners can leverage to help their clients every time. In addition, they do this to help make the loan process more streamlined and more straightforward. At the same time, they educate you on how to make the best decisions with confidence.
Coordinate with others for a more holistic approach
As mentioned, their strong network consists of other professionals. They may include your accountant, wealth manager, attorneys, and other professionals who may complement your overall financial plan now and beyond.
Mortgage Planning for Self-Employed Buyers: What To Know
Self-employed individuals may have a slightly different path to securing a mortgage compared to those who are employed through traditional means. Thus, it can be a challenge for traditional lenders to accommodate them. Whether you are a freelancer, entrepreneur, or business owner, you could face penalties simply for earning a non-W2 income (especially if you have plenty of tax write-offs of your own).
But why go through all that torture when a mortgage planner for Malvern self-employed individuals can help you document your income with the necessary paperwork? At the same time, they can also match you with lenders who can work with self-employed individuals to ensure that you get the best mortgage that is beneficial for your financial future, not the other way around. Real estate investors are among those who don’t need to go through traditional mortgage providers due to those penalties (not to mention they, too, fall under the self-employed category).
Whether you are buying a home or an investor looking to finance commercial real estate near Malvern and the surrounding area, it’s better to find a mortgage planner who can help you avoid the stress and headaches that traditional mortgages can give you.
Mortgage Planning for Commercial Real Estate
Whether you are a small business owner or a commercial real estate investor, one thing that is obvious is that commercial real estate is completely different from residential. That’s because you’ll be dealing with different property types like office spaces, multi-family units, retail spaces, and others. Nevertheless, there are different rules, documentation requirements, and tax implications that are all applicable to commercial real estate mortgages.
A mortgage planner who specializes in this space can also assist you with what you need. This includes the following:
- Structure loans that match your investment timelines
- Assess your ROI and cash flow
- Compare different loans (SBA, conventional, portfolio, etc.)
- Help you decide whether to lease or purchase
- Optimize depreciation and tax strategy
While the best mortgage planners understand both residential and commercial lending, finding one that specializes in the latter can be the best move for you. That way, they have a much deeper understanding of your needs and goals while also customizing a plan that will meet them accordingly.
More importantly, you’ll want to verify a mortgage lender that you know for sure can handle your lending needs. Choosing one should take strategy and due diligence to ensure that they are the best option for you, whether it’s a one-time thing or if you need them on a recurring basis (especially if you have plans to acquire more properties in the future).
What To Expect When Meeting Your Mortgage Planner For The First Time
The process typically begins with an initial consultation. The mortgage planner will use this opportunity to gather information and educate you on the mortgage process. From there, they will also discuss certain key topics such as:
- Income and employment
- Credit score and debt
- Short-term needs versus long-term vision
- Your property type and location that you desire
- Current savings and retirement goals
The idea here is that your mortgage planner will provide you with recommended options that reflect your current situation. You may include pre-approval for purchase, refinancing, or investment strategies. As such, what’s happening here is that your mortgage planner is making sure that you make clear decisions while avoiding costly ones. Whether they focus on commercial real estate in Malvern and surrounding areas or residential mortgages, your planner can make sure you make the right decisions with absolute certainty and confidence, knowing that they take you one step closer towards your goals.
Real-World Scenarios Where Mortgage Planning Makes Sense
Mortgage planners, residential or commercial, can help homebuyers and real estate investors in almost every possible situation. As for how they can help, it may be a good idea to consider some of the following scenarios below:
- A young couple buying a home for the first time: These first-time home buyers have already qualified for a 30-year fixed loan at an interest rate of 6.75%. However, their Malvern mortgage planner sees that the plan to move is within a 5 to 7-year period. From there, they recommend the couple to a 7/1 ARM at the rate of 5.75%. This will help the couple save a lot of money (specifically $200 per month and over $15000 in interest alone during their home ownership).
- Entrepreneur buying a mixed-use building: A business owner is looking for commercial real estate near Malvern and nearby communities with the purpose of earning office and rental income. Knowing this, a mortgage planner puts together an SBA 504 loan that is designed for equipment financing and lowers down payment requirements. As a result, this gives the investor plenty of additional capital to help them expand their business for the long term.
- High-net-worth buyer with a complex financial structure: This buyer, in particular, runs into a roadblock after an online lender denies him. Despite having multiple sources of income, investment accounts, and a trust, he is denied due to the fact that the lender focuses more on those who provide W-2 income. Still, he works with a mortgage planner near Malvern who works with his CPA to structure a loan that is provided by a private portfolio lender.
A mortgage planner can handle the heavy lifting for your property buying needs, no matter how complex the situation may be. Penn Street Mortgage does its part to make sure you get the best mortgage that fits your homebuying or commercial buying needs. As a result, you’ll get peace of mind as well as the confidence to choose the right option for your needs and financial goals. Imagine years from now living in the home of your dreams or getting more rental income without issue because you chose the right mortgage.
Final Thoughts
At Penn Street Mortgage, we know how securing the right mortgage can be a challenge. Whether you are a first-time homebuyer or a self-employed individual who has run into roadblocks (and anyone in between), we are committed to making sure your plans are customized with your goals and aspirations in mind. From there, we’ll help you find the right mortgage that is structured and fits you best instead of something that may seem out of place. Contact Penn Street Mortgage today, and we will be happy to help you with a consultation.