CONVENTIONAL loans: Benefits and all disadvantages loans have their advantages and disadvantages, conventional loans are no exception. Therefore, we have provided this list of pros and cons of conventional loans, with the purpose that you better know these loans. Advantages: or creditors are free to increase or decrease the rates of loans. or rates are generally smaller with this type of loan. or where a person who wants a loan does not have all the possibilities to do so, the creditor has the opportunity to auto – make sure the loan, and at the same time the increase in the rate of interest to compensate for the risk that he or she takes. or lenders may be more willing to negotiate or eliminate certain fees of the loan. or if the loan is carried out in a portfolio, the lender can modify some financing options for the buyer. or the lender can allow other types of warranty and/or complement to the property to be mortgaged.
or lenders can also maintain the credit in its own portfolio of credit, which allows greater flexibility of subscription because the loan will not have to meet secondary market guidelines. Disadvantages: or this type of loan, although very popular with borrowers still does not have so many people who are really willing to do this type of agreement. or it should not be to the lender with the increase of the tariffs it encentraria in an unfavorable situation with low-interest on loans and at the same time would not have the ability to lend money to borrowers. or loans are limited by rules established by the company in particular, by that in this way the clients are also limited. or conventional loans often require one larger initial payment required that loans backed by the Government. or in comparison with Va and FHA, conventional mortgage loans require higher payments. or interest rates are set by each financial institution and can overcome the loans FHA and VA. The lender may not allow that some of the creative options for financing for the buyer.