Tips for Financial Advisors to Get a Great Mortgage

Tips for Financial Advisors to Get a Great Mortgage

Tips for Financial Advisors to Get a Great Mortgage

You’re used to providing advice to clients on how to achieve their financial goals. Devising strategies to optimize retirement savings, establishing budgets for high-value clients, estate planning, reviewing insurance, and recommending options for mortgage loans or refinancing – it’s all in a day’s work for a financial advisor. Although the compensation is rewarding, it falls into the non-traditional category and can make buying a home of your own challenging. 

For financial advisors and other wealth managers, it’s common to earn fees on assets under management (AUM) or on an hourly basis, or for certain transactions it could be commission-based. While some may be salaried positions, that’s not the norm. It’s this non-salaried income that’s considered non-traditional, and many mortgage lenders assume it’s a risky business. Particularly for financial advisors new to the industry, it can be a struggle.

It certainly doesn’t relegate you to a life of renting, though. Like the advice you’d give someone in your position, here are three tips to get a great mortgage.

Optimize your personal credit profile

You haven’t achieved the ability to construct a financial plan without implementing a thing or two in your own life. However, certain aspects of your credit profile may have fallen out of focus. Your credit score, for example, needs to be strong in order to qualify for some of the mortgage products available for a professional claiming income on a 1099. Staying current on your payments with few to none late-payment notices on your credit bureau is important, obviously, and so is responsible use of revolving credit. Aspire to keep your revolving credit balances to a minimum, even if your income has no problem servicing the payments, for a strong debt-to-income ratio. 

As well, a substantial down payment can alleviate a lot of the issues that can come up. Budget for the mortgage you can afford, then save up at least 20% to keep your LTV ratio below 80%. In that way, you can likely avoid having to pay private mortgage insurance. 

Look for flexible home loan terms

If you take the advice you give your clients, there will be several changes over the life of the loan. It’s crucial to choose home loan terms that allow you to comfortably make your monthly mortgage payment without restricting your access to equity with massive penalties or pre-payment charges. Whether your fixed mortgage is for 15 years or 30 years, ensure you can restructure, refinance, or modify your mortgage. 

Find a specialized mortgage lender

You may find the loan amount you want is beyond what a traditional mortgage lender will approve or your home price is above the FHA limits. If getting approved quickly and easily is what you want, a mortgage lender that specializes in self-employed borrowers and investors – financial and investment advisors included – is what you need. That’s where MBANC specializes. 

We understand that buying a home as a professional can be challenging. Our mortgage options make it simple to secure the mortgage you need to purchase the home you deserve. From 1099-only mortgages and bank statement loans, we’ll do a deep dive into your financial records to get you approved.

Find out more about mortgage options available to you by contacting MBANC today.

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