Understanding Loan Terms

Understanding Loan Terms

A Quick And Comprehensive Introduction To Custom Mortgages

by Gregory Hall

There are many valid reasons to own a home. The most outstanding is that homes are long-term investments that appreciate with time. Plus, buying property affords you the pride of ownership, relevant tax deductions, and freedom. Your home also saves you from paying rent. However, since most quality homes available in the market are costly, a majority of people can't afford to buy them out-of-pocket. If you are in the same bracket, don't worry. You can now seek a custom mortgage loan offered by a full-service mortgage lender and use it to purchase the home of your dreams.

What Is a Custom Mortgage?

Custom mortgages are unique loans that mortgage lenders tailor to meet the needs of a particular borrower. Unlike conventional mortgage loans that are essentially one-size-fits-all solutions, these serve specific purposes. Many prospective homeowners opt for custom mortgages because they provide a better alternative, especially when there's a possibility of traditional mortgage loans getting denied before the process is complete. Some of the options that come with custom mortgages range from making lump-sum payments and larger down payments to increasing payment frequencies and selecting shorter amortization periods.  

Why Should You Opt for a Custom Mortgage?

Some of the reasons to choose custom mortgage loans include:

1. Quicker financing

Opting for a traditional mortgage means going through a lengthy, tedious, and frustrating process. It typically includes submitting an application, examining your financial status, getting approval, loan processing, underwriting, and clearance. The entire process takes anything from several days to weeks. But full-service lenders understand their clients' needs and therefore endeavour to allocate loans as quickly and efficiently as possible. That means you get to own a home with less hassle or unnecessary delays.

2. Flexible payments

You are likely aware that full-service mortgage lenders offer flexible rates. What you may not know is that their payment criteria are even more flexible. For instance, you may choose to pay a larger down payment. That, in turn, means you are left sorting out a smaller mortgage loan balance. One of the benefits of a smaller loan is it cushions your home's equity even when market values plummet. Moreover, many full-service lenders allow you to make lump-sum payments, otherwise known as recasting. By doing that, you get to enjoy lower monthly payments and interest amounts while you service your loan.

3. Experienced lenders

Many full-service mortgage lenders are experienced specialists in their field. Their experience and expertise allow them to structure loans that focus on financing your specific needs exclusively. Moreover, if your mortgage relates to your company, these lenders can recommend professionals like mortgage bankers, analysts, closers, and servicing or marketing specialists whenever you need them. 

Contact a company like Secure One Capital to learn more about mortgage lenders.


About Me

Understanding Loan Terms

When I started my own company, I knew that I needed a little business capital and fast. In an effort to raise money, I worked with various lenders to discuss loans, financing, and special terms. Unfortunately, I quickly discovered that not every loan was created equally. Some loans had almost predatory terms like high interest rates and penalties, while others were completely fair. Fortunately, a business consultant of mine taught me about loans and financing, so that I could make better choices in the future. The information on this blog saved my business, and I know that it can help yours too.