Who are the Best Home Lenders?

Picking the best home lenders, without understanding the criteria you are looking for, is challenging. Most people think the "best" lenders are those with the lowest rates and most ethical lending practices. If this matches your criteria, then the best home lenders are FDIC insured banks with Federal Housing Administration approval.

FDIC Insurance

Getting your mortgage through an FDIC insured organization means you are working with a bank or lender that has followed the requirements needed to maintain federal insurance on deposits. This means the lender is ethical according to federal regulations. Lenders who have insurance through the FDIC regularly run credit checks on all borrowers, set reasonable limits on loans and make proper disclosure on lending agreements.

FHA Approval

FHA guaranteed loans tend to have the lowest interest rates on the market. You can get an FHA loan by applying with a private lender then submitting an application for the FHA guarantee at a later date. It is easier to take care of both steps at once, though, and you can do this if you work with an FHA approved lender. FHA approved lenders hold the same standards as the FHA itself, so they have the authority to approve you directly.