Final answer:
Reassuring a borrower who is concerned about being stuck with a second mortgage involves allowing them to thoroughly review the loan documents and suggesting they consult with a financial advisor for further clarity.
Step-by-step explanation:
A good response to a borrower concerned about being stuck with a second mortgage after signing all documents would be: Reassure the borrower that the documents can be reviewed before signing. It's important for borrowers to understand all terms and conditions of the loan agreement. If they have concerns, consulting with a financial advisor can provide clarity and ensure that they are making an informed decision.
In the financial capital market, before a bank approves a loan, several measures are usually taken to ensure the reliability of the borrower. These measures include filling out forms regarding income sources, undergoing a credit check, requiring a cosigner, or providing collateral such as property or equipment. The collateral can be seized and sold if the loan is not repaid. These steps help reassure the bank about a borrower's ability to repay the loan.