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House Hlaalu
Hlaalu is the closests of the great houses to the Empire, they're the least xenophobic and mostly care for good business and profit above all else.
They favor Light Armor, Marksman, Mercantile, Security, Short Blade and Speechcraft.
House Redoran
Redoran is more the path of the warrior. They're focused on tradition and the Dunmer way of life. They're allies with the Tribunal Temple as well as the Legion and Fighters Guild.
They favor Armorer, Athletics, Heavy Armor, Long Blade, Medium Armor and Spear.
House Telvanni
Telvanni is the most xenophobic and egocentric of the Great Houses. They mostly keep to themselves, with a primiary focus on Magic.
They favor Alteration, Conjuration, Destruction, Enchant, Illusion and Mysticism.
If you're playing as a Warrior, House Redoran may not be a bad choice, but don't let the limitation of your skills put you off other Houses, trainers are plenty in the game. Regarding level, you can start whenever you want, like other guilds, you'll have to become stronger to progress.
So you have to chooice, once you joined a great house, you cannot join the other 2.
You can join a great house at your earliest conveniance.
If you become master of a great house you get to build a stronghold (your own house sort of speak) Though all 3 houses have their own type and location for that stronghold.
If you become master of a great house before a certain stage of the main quest, you will find it easier to do the main quest, at a certain point in main quest you will need to get the recognision of 3 great houses, as the master of one, that leaves only 2,
Well now the great houses.
Their names and places where you can join them.
Background story (lore)
And rewards for joining
House Hlaalu
*can be joined in the city of Balmorra, at the Hlaalu Council Manor, by talking to Nileno Dorvayn
-Is the most backstabbing of the great houses. Money to them is king, and they suck up to whomsover is the boss, and use a lot of plotting and sceaming and are utterly bribable.
Thats why they are fist-deep connected with the imperial occupation forces, while the corrupt king of morrowind (a mere puppet under imperial rule) also comes from their ranks. This king murdered his own father to become king, and sends assasins after you, the nevarine.
The head of the camona tong, the traditional assasins organisation of morrowind, is also a hlaalu. Though all this may sound bloody and bad, Hlaalu house members value their reputation over anything, as with reputation comes far more power and money than a short time gain that hurts your reputation would.
-most of their quests give high cash rewards, but little items of interest
-the stronghold you recieve s rather small, but is is only a short walk from the balmora silt strider, and thus the most accesable of them all.
House Redoran
*can be joined in the city of Ald'ruhn, inside the Manor District, in the Redoran Council Hall, by talking to Neminda.
-Is the most honourous of all the houses. Never below stepping down in the mud, helping the little guys, while also providing cannot fodder in wars. They have a strong warrior code, and code of honor, and they didn't pick to build their main city this close to the ghostfence for nothing, they like to stay close to the action. They are not liking the imperial occupation of morrowind, but they are loyal enough to follow orders, and they did lay down arms when their own leaders ordered them.
Members of House Redoran value loyalty above anything else, loyality to your house, your people, and your nation.
-The rewards of their quests are somewhat lacking to be honest, neither good gold or items
-But you get one of the biggest and best strongholds, that is not as convenient located as the hlaluu one, but still within acceptable walking distance from the ald'ruhn silt strider.
House Telvani
*Can be joined in the city of Sadrith Mora, at the Telvanni Council Hall by speaking to one of the mouths.
-This is the wizzard house, it's masters are thousands of years old grand wizzards, that chooce to interact as little as possible with the rest of the world. They don't care for politics or who is leader on paper as they see these times as mere childsplay. "I was there before you and will be there long after you are gone" They won't pay taxes, and they wish to be left alone, disturb their seclusion, or try to impose your rule on them, and you just will find out how powerfull they are. To their defence, they did close some of the oblivion gates in morrowind during the oblivion crisis, so when their is a real crisis and need for their power they will step forwards, but most likely they still only handle from self interest, either because closing such a gate is a nice learning experience, or because they saw those as a treat to themselves in the long run.
Telvani value Individual Power above anything else, if you win a fair 1 on 1 fight, your won the argument in their logic. But they are not aggresive in promoting this policy, they have no interest in laying their will on others, except when those others have some items they desire, than they better hand them over, or be prepared to fight till the death.
-Their rewards of their quests are lots of nice strong magical items.
-Their stronghold is not to bad on the size part (your own mage tower) but it is litterly in the middle of nowhere, good getting there.
Next time, be less lazy, and google before posting questions here.
http://www.uesp.net/wiki/Morrowind:Great_Houses
would have answered all your questions, and more.
http://www.uesp.net/wiki/Morrowind:Redoran_or_Telvanni_and_Hlaalu
You can kill level 60 high ordinators at level 1 using the ring which means you can pretty much kill anything using the ring. It is great for farming sellables to buy training or whatever.
You can also join house Hlaalu using the glitch that was previously mentioned.