With interest rates reaching all-time record lows (the most recent 30-year ARM average being below five percent), homebuying has become particularly popular here in the U.S., but vacation-condo and investment property buying have also become increasingly popular. Interestingly enough, increasing prices have not slowed this positive buying trend, especially here in Florida. When considering a purchase, unless you are paying cash, it is imperatively important to choose wisely when selecting a finance company to finance your purchase, because each one is different, and each one can easily effect your purchase price, as well as determining whether or not you get the loan you apply for.

Here are some things to remember when selecting a company to provide you with financing your real estate purchase:

Find the mortgage lender that will provide you with the best mortgage for the lowest price. Remember, there are always closing costs, and typically financing charges involved when getting a mortgage loan. The key quality to look for in a lender is a good track record of service and reliability, but if you can find a lender that offers this without finance charges (points) or with a lower finance charge, all the more better for you, the buyer. Here's some background information on each lender type.

Mortgage Bankers. These are lenders that are large enough to originate loans and create pools of loans, which they sell directly to major investors. Since they are usually a brand name, they have competitive first time buyer programs (i.e., FHA), lower interest rates and financing costs. However, there can be problems when working with a big bank. Big banks, at times, aren't as likely to listen to their customers after the purchase of the mortgage, and if you have past credit problems, it is likely that they will not issue a loan to you.

Portfolio Lenders. These are lending institutions that lend their own money and originate loans for itself. They are lending from their own portfolio of loans and are not worried about being able to immediately sell them on the secondary market. They can create their own rules for determining credit worthiness, which makes them an ideal place to apply for a mortgage loan if you're credit history is somewhat shady. It is easier to qualify for a portfolio loan since their loans are usually adjustable rate loans. The down side is that they are not as competitive as mortgage bankers and brokers in the fixed rate market.