Are you considering becoming a homeowner but not sure where to start? Just like the old adage which one comes first the chicken or the egg, you may find yourself asking, do you start by finding a real estate agent or a lender?
Maybe you have read or heard that you should start with finding a lender to make sure your finances are in good standing, you’re able to secure a loan pre-approval, and the lender will be able to determine your home purchase budget. While these are all true, very good points and real estate agents appreciate buyers who come ready and prepared.
I firmly believe that buyers should start out by talking to a real estate agent first. You don’t necessarily have to choose the first agent you talk to, but ask the agent for referrals to their “preferred” lenders. As you talk to more agents, you may hear the same lender(s) making it on this preferred list. That is a clear sign of which lenders you should be talking to. As I’ve written in my previous blog post, a lender is one of the most critical team members to have on your team when buying a home. The difference between having a great lender and a bad lender, can make your transaction feel like driving a freshly paved interstate or on side streets and avoiding potholes and detours.
So, start by talking with some local real estate agents to get referrals to great lenders. Get pre-approved with one or more of those lenders, then finalize your choice on one real estate agent that you know, like, and trust to represent you on your team. From there, your real estate agent will guide you the rest of the way from finding homes to view, showings, writing offers, negotiations, inspection, and closing! Like anything, it’s important to make sure your off with a good start.