I did something fun the other day that I hadn't done in quite some time. I held a first time hombuyers' seminar. The reason I stopped doing them a while ago was because it seemed like every other lender was having the very same seminar -- albeit it surely wasn't as informative as mine -- and attendance was always low. So I stopped doing them.

But an opportunity arose that seemed perfect for one and I decided to crank it up again. And it was both sobering and refreshing hearing some of the questions these potential first-timers threw at me.

I started the session and explained where mortgages came from, who loan officers and loan processors are and how mortgage rates are set. But I soon noticed something that I hadn't seen in quite some time -- people were taking notes. I mean really, really taking notes.

Everything I said they seemed to jot down in their workbooks. I could see wheels spinning and a few "a-ha's!" every now and then. They acted exactly like college students. Good college students even. They were paying attention!

When I look back at all the speeches I've given over the years or various presentations to different groups about real estate finance I don't recall having this much activity. When you've been in the business for as long as I have, after about the 487,566th explanation of the APR number I can hear myself getting a little stale.

But not at this session. Every single person in that room was buying or planning to buy a house soon. And they were getting all the information they possible could. But they weren't downloading it from the Internet from some website -- they were getting it straight from the old mortgage horse's mouth.

Then I again asked for questions: Boom! Nearly every hand shot up. And some of the questions were so naïve that it made me smile.

• "How much does it cost to apply for a mortgage?" (Nothing)
  
• "How much does a prequalification letter cost?" (Nothing)
  
• "Is the rate on my good faith my mortgage rate?" (No)
  
• "Is it okay to buy less than what I'm approved for?" (Certainly)
  
• "How much money do I owe everyone if I change my mind and don't buy?" (Nothing, except maybe your earnest money)

What made me smile most of all is the thought that I had forgotten people even had such questions. Sometimes I'm all too serious about answering the great big, technical questions and forget about the first timers. It was in fact a first timer that made me fall in love with this business nearly twenty years ago.

It was a young lady in San Diego who literally began to cry when I told her she was approved to buy the house she wanted. I got a little misty-eyed too. It's the first timer that I'll always love.

I think I'll start doing these first time homebuyer seminars again. Good for my heart.

Published: November 17, 2006

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, a veteran Mortgage Banker, successful Real Estate Consultant and author of Your Guide to VA Loans, Mortgages 101: Quick Answers to Over 250 Critical Questions About Your Home Loan, Who Says You Can't Buy a Home!, and Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You, is a former columnist and Contributing Editor with San Diego-based Mortgage Originator Magazine. Reed is President of CD Reed Mortgage Bankers, Austin, TX and is a Past President of the Austin Mortgage Bankers Association.