At the point where you are ready to begin the process of buying a house, one of the typical questions you would come across is which should come first; a real estate agent or a lender? They are both extremely important parts of the process but the order in which you do them can have a huge influence on your experience.
We are going to break it down so you can decide with confidence and certainty.
Why the Lender Might Come First
1. Get Pre-Approved Early
It is necessary to know how much you can afford before falling in love with a home. A pre-meeting with a mortgage lender is useful in helping you:
- Understand your budget
- Get pre-approved for a loan
- Gain a competitive edge when making offers
As a matter of fact, the majority of real estate agents like to deal with pre-approved buyers as this demonstrates that you are serious and have financial potential.
2. Better Decision-Making
Understanding the possibilities of your financing beforehand will have you in the right place. And you will not lose time viewing homes beyond your budget capabilities. In addition, it makes you identify whether you feel comfortable with the monthly payments as well as closing costs.
The Case for Finding an Agent First
1. Guidance from the Start
A real estate representative can help you in the whole process of acquisition including referring reputable loaning. An agent will also be able to tell you what is wrong with the property and help you to choose a good one if, as a first time buyer, you do not know the area:
- Explain how financing works
- Help you identify neighborhoods within your budget
- Provide local insights that influence property values
2. Network Connections
Agents tend to know lenders over a long period of time. In case you do not know how to start, your agent can introduce you to a reputable mortgage specialist who would best fit your financial picture.
So, Which Comes First: Agent or Lender?
Here’s the short answer: Ideally, start with a lender, then get an agent.
Why? Due to the fact that going into the housing market with a pre-approval letter in hand gives a person the tone which will make the process much easier and less stressful. You will have an idea of what you can afford to buy and this aids your agent in more efficient searches.
Nonetheless, in case you are not quite sure to whom it would be appropriate to work or cannot clearly understand the market, it would perhaps be more sensible to chat with an agent and then decide on the further course of action. It is usually a matter of how comfortable you are or have experience with homebuying.
Final Thoughts
The first meeting with either a lender or an agent is only important, what matters is the preparation. The housing market is a fast-moving market in some regions, especially those that are considered competitive thus an appropriate team should be ready at an earlier stage.
Quick Tip: Make appointments to meet with both as soon as possible so your lending options will fit with your house choices. This will not only put you in a state to buy, but in a state to shop smart.
Richard Slezak, Las Vegas Realtor®
Agent License: S.0201790
Call: (702) 688-3508
MAIL: richardslezak@gmail.com
Address: 2298 W Horizon Ridge Pkwy #114, Henderson, NV 89052, USA
