I have recognized that there is a confusion as to what the difference is between a professional in the Mortgage space and who is the best individual to select when looking for a mortgage. Although not everyone is going to want a Mortgage Advisor, they are truly who I would recommend. Here are 5 ways a Mortgage Advisor is different than a Mortgage Originator.
Before reading these 5 items, think of your profession and then consider how you might be miss-understood based on your title and the various ways you can be identified in society. For example, when I hear someone say they go to Therapy, I wonder... are you seeing a Counselor? Is the Person a Licensed Therapist? Do they prescribe medications to you? They are then a Psychiatrist, but do they also do talk therapy? Or are they a pastoral counselor? Maybe they are more of a life coach? All these titles are different and their objectives, skillsets and boundaries within what they are legally obligated to uphold are different.
Knowing who and what a professional is able to do prior to working with them is a helpful resource in preserving your energy towards accomplishing your goal.
1. A Mortgage Advisor typically provides advice on a wider range of mortgages, such as fixed-rate, variable-rate, and reverse mortgages, while a Mortgage Originator typically focuses on originating home loans. Although it is really helpful to understand that a Mortgage Advisor is also a Mortgage Originator. They, however, have a wider range of knowledge in recommending the most ideal product for your specific financial situation. Not all traditional home loans fit all borrowers when considering purchasing a home. Time frame, current market conditions, goal of the asset and purpose of the purchase are all variables that need to be considered when selecting a liability for the transaction. A Mortgage Advisor can do what a Mortgage Originator can do but with a bolstered knowledge of alternative solutions to meet your goals.
2. Mortgage Advisors are often independent, while Mortgage Originators are typically employed by a financial institution and are required to work based on regulated hours and duties. As a Mortgage Advisor has the freedom to create their business as they desire. Hours, borrower engagement, referral partnerships etc. A Mortgage Advisor has more freedom to create a brand that aligns with their specific skill set. This is valuable in providing a borrower with transparent knowledge and interests to align with an ideal match for the two parties. As a Mortgage Originator they are often not looking for their own business. They are often provided business through the financial institution; they are hired by and complete each loan per the institutions brand and identity.
3. Mortgage Advisors often recommend specific lenders and loan products, while Mortgage Originators provide assistance throughout the loan-application process. Similar to #1 a Mortgage Advisor can also be a Mortgage Originator. This is accurate in this case. A Mortgage Advisor will recommend a specific lender and loan product as well as maintain and provide assistance and advice throughout the loan application process. In addition, a Mortgage Advisor will provide supervision of the file from the point of approval through the closing. Having a General Contractor overseeing your file is critical to the success of all parties executing on their commitments. A Mortgage Advisor is equivalent to a General Contractor.
4. Mortgage Advisors may not be able to provide the same level of customer service as Mortgage Originators, who can address all inquiries related to the loan process. All though this sounds like a negative, it, in my opinion is not. I believe a strong Mortgage Advisor knows their strengths. Removing the Mortgage Advisor from needing to understand the complete nuances of the file requirements is ideal for you as the borrower. Although they might not know the answer to all your questions, they know who does and can provide you with that information. As a Mortgage Originator, they are often consumed by the ins and outs of the file regulations and document handholding with a borrower. This does provide more consistency for professional interaction and is often someone who is very detail oriented and is able to do both the building of a file and the communication between borrower and Originator to provide seamless interactions. Less hands in the cookie jar.
5. Mortgage Advisors often provide advice and guidance on all aspects of the loan process, while Mortgage Originators are typically focused solely on the origination. This, I believe, is the most critical of differences. A Mortgage Originator is skilled at the back end details to get a file into a query. However, a Mortgage Advisor is a supportive professional from pre-application, during application process through every step of the transaction. They are also often professionals who will answer calls and emails post-closing. Mortgage Originators are often limited in their ability to engage post-application process due to their duties and responsibilities within their workplace.
Although I believe a Mortgage Advisor is the best choice, that is a personal recommendation. I think this way because it is what I would enjoy and do enjoy for my transactions. I want a comprehensive approach to my liability acquisition. I however, understand that everyone is different and personal preferences are what help both Mortgage Advisors and Mortgage Originators from having successful businesses. When it is time for you to look into acquiring a large asset like a home. I recommend you look into what parts of the transaction your mortgage professional will and will not be part of. This will likely help you narrow in on who you desire to work with.