When you buy a home, knowledge is king! Knowledge about the area, the schools, and price range are extremely important. Knowledge of mortgage terms is also very important, so a good place to obtain this knowledge is from a mortgage glossary.
Obtaining financing for a home has its own "language". Those that are in the business can speak to each other in this language and communicate effectively. However, buyers that only venture into the real estate world when they need to move or refinance have a difficult time communicating if they are not familiar with the terms.
The preparation to move or refinance is similar to going on a trip to a foreign country. You would not travel to Japan, for example, without learning the basic terms of Japanese (hello, where is the bathroom, I need a cab, etc.). You would buy a Japanese dictionary before making your trip.
Before you take a trip to MortgageLand, you should arm yourself with a glossary of mortgage terms in order to make the "trip" a successful one.
I have seen home buyers sign documents with the look of a lost puppy on their face. When I see this look, I know why. They are signing documents based on faith in their professionals that have helped them. Faith in their professionals is a good thing, but having faith in themselves because they are knowledgeable about the terms is a much better feeling!
I think the home buying or refinancing experience would be much improved if all clients were given a basic mortgage terminology glossary before starting the process. It doesn't have to be an all-encompassing mortgage glossary. It just has to be a glossary that gives the basics of what a buyer or owner needs to know in order to make good decisions about the transaction they are involved with!
Phil Caulfield NMLS #386911 APMC #1850 has been helping people obtain mortgages since 1985. The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation."