5 Tips to Get Approved for a Mortgage

3. Identify the Right Mortgage

The borrower should identify the right mortgage based on their own needs. On one hand, the conventional mortgage has higher down payments and stricter criteria for being eligible. The other kind of mortgage is a government-backed mortgage which doesn’t require as much credit score or down payments. Borrowers also need to choose between a fixed interest rate or an interest rate that varies. The term of the loan should also be taken into consideration to see whether paying higher monthly payments over a shorter duration or making affordable payments over an extended period is suitable.