It is crucial that you do business with the correct lender for your circumstance. In general, lenders will all tell you that they can do the job for you, (because part of their job is to sell you on using themselves) but there are some major differences that you will never find out until it is too late.

It is important to note these key factors in order to maximize your borrowing power.

Lenders and interest rates come in a variety of shapes and forms. Don't get fooled by the hype and marketing ploys of these businesses.

There are Direct Lenders [They usually loan their own money] and Loan Brokers [They usually broker your loan out to investors and direct lenders].

Both Direct Lenders and Loan Brokers specialize in different types of loans, such as;  1) Purchase Loans  2) Refinance Loans  3) Bridge or Swing Loans  4) Government Loans [i.e. FHA and VA]  5) Commercial Loans  6) Construction Loans  7) Equity Loans to name a few.

There are also lenders who specialize in different types of borrowers. Those that have; 1) Excellent Credit [AKA: A+ Lenders] 2) Marginal to Bad Credit [AKA: Sub-prime lenders]

Contact Us for a referral to an Orange County lender that will specialize in your specific need. We will give you several reputable sources to choose from.

Equally important to know, is that all interest rates change daily and sometimes multiple times in a day. Just like airline tickets and gas prices, home loan interest rates fluctuate, hour by hour. An interest rate that you see advertised in the local newspaper is likely an old rate and sometimes a teaser rate. Teaser rates get you to call the company only to find out that the rate advertised is only good to a small select group of borrowers.

Some direct lenders have special loan programs with "Float Down" features that will allow you to lock in an interest rate and if the rate goes up, you get the lower rate and if the rate goes down, you get the lower rate. How cool is that? You win either way! There are also "Lock & Locate" loans that allow you to lock in a rate before you find a home. This is a great tool to negotiate a lower price on your next home purchase.

Remember, for the best interest rate and terms, it is strongly recommended that you find a lender that you trust, preferably one that was referred to you by a satisfied customer and one that specializes in your needs. And remember, that the best rate and terms are always reserved for the borrowers with the best credit ratings. A credit score of 700 +, means that you should get the best rate and terms available at the time you lock in your rate.

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