#42 Identifying the Facts: My World - Your World!


Words are essential tools – we all know that!   But definitions vary, not only just by established semantics.   How we define the words we use or hear from others, varies by virtue of our experience, our education, our cultural history, our assumptions and our beliefs – and that’s the short list!

So, it certainly follows that communication in a specific venue (such as Mortgage Lending) can quickly become a comprehension quagmire of misunderstanding if the essential communicators do not first agree on some groundwork!

No one can be expected to understand the specialized vocabularies of all the venues with which they come in contact – whether for personal or business purposes.  Usually, we know just enough of “the jargon” to get by, but as soon as that specialist gets into the technical terms we can get lost in a hurry just trying to keep up!

One of the most common verbal environments that can derail you in a hurry might be the doctor or dentist.  Thankfully, when they notice you no longer understand what they are talking about – even though it’s you they are talking about! – they will scale it down to layman’s terminology.  Calling that 800 number for help with a computer problem is another example where you can get snowed under in a hurry if you are not at least an amateur techie!

The Mortgage loan industry is no different than other venues in that there are specific definitions for common terms that most of us use, but that sometimes don’t mean what we think they mean!   Confusing?  It definitely can be!    Terms like income, assets and earnings are applied casually in our everyday use.   However, in the context of formal financial  documentation usage, the definitions are strung tight as a drum and couldn’t be more specific and limiting.   And one learns in a hurry to clarify and separate our misconceptions so that we can accurately assemble our preparatory loan application homework!

The plumber or electrician know what they are doing  (their specific tools, their specific terminology) for what’s happening when you get to the end of your know-how and have to call an expert.  Architects, designers, tinkers and tailors – all have their terminologies.  Throw in regional cultural influences, and singular definitions go out the window!

When a Client wants to apply for a home Mortgage loan, it can be a lot easier if one is familiar with the specific terminology of financial institutions!  But for most of us it’s been limited to managing our checking and savings accounts, paying the bills, managing our credit lines and other similar, pretty straightforward money management tasks.   So, don’t hesitate to stop the conversation and ask for clarification!  The process improves with your inquiries!

Applying for your first home Mortgage loan will be an experience that will broaden your financial vocabulary and your understanding of specific terminology.  The ripple effect can only be positive and useful.  Everything from comprehending more about housing value trends to better management of your personal finances can become less mysterious. 

When a client has to get every aspect of their financial profile in order for their loan application, they are unconsciously setting themselves up for keeping their financial records in better order!  (...a fringe benefit?)

The business world of a Mortgage loan officer like me, and a prospective homebuyer like you, becomes more comfortably connected as communication improves.   It gets easier as the process advances, and there’s a lot to gain – in addition to your actual loan!

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