Education, The Key to Success in Mortgages & Real Estate Industry
“More credit counseling could have prevented some of the worst banking practices that helped spur the recession,” says Mike Newbold. Mike is a regional president for Ohio-based Huntington National Bank. I know that the majority of professionals view our marketplace as a place where we need to close our current transactions and simply get paid. But the truth of the matter, is that we need to ensure that we grow with our current client base, they are our lifeblood through the most difficult marketplace, so we need to take care of them.
What about this scenario? Agents discuss a brief synopsis of the real estate process with their clients. Shortly thereafter, agents should call their trusted mortgage brokers to ensure that they can afford to buy, but also that the consumer knows the implications of taking on such a responsibility. A two-hour seminar can consist of loan qualifying and the latest banking laws that are in force. This would be appropriate for first time home buyers because the lending landscape has changed quite a bit. However, I would venture to guess that even veteran homeowners will benefit from this kind of program.
I can appreciate the fact that most lenders simply do a quick review of paperwork, then slam the paperwork through as quickly as possible. After all, that’s what all real estate agents need them to do. But according to the study, it may behoove borrowers to take some time at the beginning of a transaction to become educated about the process. It will improve our rates of foreclosure in the future and allow the loans to perform instead of default. Additionally, I think that the new homeowner’s would appreciate the extra knowledge.
I am not naïve to think that the foreclosure would not have been an issue, eventually. No one was standing at the banks stating that the bubble would burst. However, an educational approach would have made the buyers pause and take note of the conditions. Most educational classes could have included the latest market trends in real estate & finance. Perhaps, the consumers would have been placed in a position to make a decision on their own. Understanding the incredible rise in home values, perhaps the typical buyer would have decided to wait.Continued on the next page