Home loan lenders can be bankers, private investors, personal acquaintances, or even mortgage brokers. They can specialize in one type of mortgage program, or they can offer a diversified portfolio of mortgage programs for all sorts of borrowers. The main types of loan programs that most home loan lenders offer include purchase loans, refinancing loans, and home equity loans.
Home loan lenders, also referred to as home mortgage lenders, each have their own unique set of business characteristics. As mentioned above they can specialize in a specific loan type, or they can offer a large selection of mortgage programs to their customers. Each lender is also in charge of setting their lender rates. These rates generally are based on the prime interest rate set by the federal government plus a certain number of points. The number of points that a customer is charged will depend on their FICO score, their financial information, and the amount of money they are willing to pay up front. To get the best mortgage rates possible you will need to increase your FICO score as much as possible.
To select home loan lenders to work with you will want to examine how they put together their loan packages. First look at how much they charge for their lender fees. These fees can be a set rate or a percentage of the total loan amount. Secondly look at how many loan programs they offer and at whether any of these programs will fit your financing needs. Next look at the mortgage rates that they charge, and try to find a lender that offers the lowest interest rates. Finally look for home loan lenders that have an established reputation as a good lender to work with.