Mortgage lenders will have a number of loan options for you. But a mortgage expert will seek to know more about an individual or a couple's economic situation first in order to recommend loan options that are best suited to their benefit. This typically entails asking some personal questions.
Answering those questions as honestly as possible, positions the broker to better make the right and accurate loan recommendations that are more customized to one's needs.
So it’s imperative that a buyer is forthcoming with answers to some private questions and any other information they can provide in order to be served with accuracy and provided with most pertinent loan options for their needs.
If one is comfortable with the lender, allowing them access to their credit report is also helpful in their assessment and informs the subsequent recommendation they will make.
Mortgage loan types include the following:
Fixed-rate loans - this mortgage loan type as the name suggests has a fixed interest rate for the entire period of the loan
Adjustable loans - the interest rate is not fixed and is therefore adjustable on the outstanding balance based on market factors for the duration of the loan
Negative amortization loans - in this type of mortgage loan, the principal amount owed increases when the borrower fails to make payments covering the due interest accrued on the loan.
Interest-only loans – this is an adjustable interest loan that allows the borrower to pay the interest rates for the first few years.
Unsatisfactory answers or aggressive up-selling by the lender can be a put off prompting the borrower to research another more accommodating lender. With the help of a good brokerage firm, one should be able to find out which option is most suitable for their individual case in a friendly and transparent way.