Financial jargon, made simple.

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After talking to a friend my recently who is in the midst of designing my new website how exciting! Well I’m excited, I have decided that maybe financial advisors use too much jargon. I’m sure we all do it when we know so much about a subject we think other people should know as well. Not so in the case of my friend, who lost me totally when he was explaining how my website was going to be designed.

    So over the next few weeks I thought I would simplify some of the financial jargon you may have heard, starting with the mortgage process.

To be honest it is very simple, but unless you’ve done it a couple of times it can be a minefield, so many decisions to be made and at the time it can start to make your head spin.

    First thing most people ask are “How much can I borrow?” and “What’s it going to cost me?’’ If I were in their shoes, that’s pretty much what I would ask. Of course you want to know the answers to these questions, but taking my job seriously and I do, there is so much more you need to know.

So once we have got past this point we carry out a fact find, which is, me asking relevant questions about you such as job, income, credit history, where you live, how long have you lived there and so on. The reason for this is I need to get a picture of what I can do for you and second is this is the information most mortgage companies need to know to complete an AIP or a mortgage promise. See there’s our first bit of jargon. AIP what does that mean? Well it means agreement in principle, what does that mean exactly? Basically it’s a nice way of saying credit check. We need to know your credit is good before you get to far down the line and start offering on properties without knowing if you can even get a mortgage, let alone afford one. 

     Once you have been agreed in principle and know how much you can borrow it puts you a great position to go out there and find the property you can afford.

     With every appointment I do I go through this and much more, over the next few weeks I’m going to break down the agenda I go through with all clients and explain what it all means to you.

     ianminns@fsmail.net - 07810 872634 Please feel free to email or call me with any financial questions you have. I do not charge a fee for my advice and it is strictly confidential.

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