Tag: Customer’s

Banks, credit agencies, Mortgage

Mortgage: The View from The Customer’s Standpoint

Banks, credit agencies, loan officers and real estate salespersons all have a particular understanding of mortgages and their concepts and rules that guide them.  Things like prime interest rates, closing costs, fixed vs. adjustable mortgages, and short vs. long-term mortgage loans are all part of the basic lexicon of their dialect.  But for the average Joe they might as well be talking in Greek or Arabic.  The average citizen often has only the vaguest idea what these things really mean to them personally.  Nor do they really understand what the impact of a quarter of a point increase or decrease in the interest rate has upon one’s lifestyle. 


When the average citizen comes in contact with a realtor or mortgage loan officer they are basically seeking somebody who can translate all these esoteric concerns and worries down to the most elementary answers to the most basic question: How can you make it possible for me and my family to have a nice home in a nice neighborhood for a nice price so we can live a nice life without being threatened with lifelong poverty?  And they rely upon the mortgage broker and realtor to provide them with the guidance and expertise needed to accomplish that.  In this perspective, the mortgage officer seated across that is the person whom they rely upon as much as they depend upon their child’s schoolteacher or their family physician to give them proper guidance to accomplish those goals.  This can be advice on everything from making a bid on a property to something as ordinary as saving money using Groupons to shop high end retailers like Allan Edmonds.  


For the average person, when they look at their monthly mortgage payment slip, they have a basic knowledge of what the “principal” is and they need their realtor to explain all the intricacies behind the interest, insurance, escrow and other stuff.  As one guy said, “That’s why they wear the leather-soled shoes and I wear the rubber-soled ones.  And the key thing in the sentence is who’s getting sold.”  When the consumer has utmost faith in the one who makes those real estate arrangements, then all are truly happy and the results benefit everybody