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Home Lender Mortgage - Home Mortgage Lenders - Major Home Mortgage Lenders, Finding a Home Mortgage Lender

loan rate fees consider

Although there are many banks and other financial institutions that offer home mortgages in the United States, in light of the 2007 crash of the housing market in the United States, it is more important than ever to find a reliable home mortgage lender who can provide you with the best mortgage for your needs.

Major Home Mortgage Lenders

While there are many smaller reliable lenders, larger financial institutions can often offer better deals and/or provide more reliable loans. In the second quarter of 2009, the top companies that provided the most home mortgage loans in the United States were (in order) Wells Fargo, Bank of America, JPMorgan, Citigroup, and Residential Capital LLC. While a loan with one of these companies is no guarantee that you will find the best rate on your mortgage, home lender mortgages with these companies should be reliable and might be a good option for first time home buyers or those with little financial experience.

Finding a Home Mortgage Lender

When you set out to find a home mortgage lender, be ready to do careful research. Many types of financial institutions offer home mortgages, and many of these institutions will have different rates and requirements. Quite often, mortgage brokers can help you find the best loan for your needs. However, just as you need to research mortgage lenders, you also will need to research mortgage brokers and seek out prices from several different brokers before deciding which route to go. Also, many institutions will only deal with brokers and not private individuals. Make sure to be clear on whether you will need a broker and factor this into your total costs.

When seeking out a home mortgage lender’s rates, make sure that you are aware of all the costs that are attached to the loan. The first and probably most important factor to consider is the interest rate. When seeking the best interest rate from a mortgage lender, ask the lender for its current rates for that particular day and that week. Also be sure to consider whether those rates are fixed (they will stay the same for the whole term of the loan) or adjustable (after a initial low rate of one to five years, the rate increases) and consider both the immediate cost and the overall cost.

In addition to the monthly payment based on interest rate, you need to consider other costs. Many mortgage lenders offer the option of paying initial fees that are called points. The more points you pay for, the lower interest rate you should be able to get. Home mortgage loans will also have several other initial fees, including loan underwriting fees, closing costs, and broker fees if necessary. Your lender should be able to give a basic estimate of how much these fees will be. With some loans, you can roll these fees into your loan total, while this will sometimes increase your rates. The final cost to consider is your down payment. While the standard downpayment on most loans is 20%, many lenders will allow borrowers to put down much less. Usually when the downpayment is less than 20%, the borrower will need to purchase private mortgage insurance, which will protect the lender if the borrower defaults on the loan.

With a little bit of careful research, you should be able to find the right home mortgage loan for your needs. The key, as with most other consumer purchases, is to be patient, shop around, and do not sign until you are knowledgeable about and comfortable with the terms of the loan.

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