Purchasing a house is perhaps the most critical choice you’ll ever make. Just like any other first-time homebuyer, you presumably have a considerable number of questions before you get started, from choosing the perfect purchasing opportunity to determining how big of a house you need.
With endless decisions to make, it’s not surprising that the vast majority of people aren’t sure precisely where to begin when purchasing a home. Is it better to consult with a realtor or home loan lender first? Here we’ll discuss what you need to know when picking a realtor and a home loan lender to help you decide what to do when buying your home.
Talk to a Home Loan Lender First
When it comes to purchasing a house, it makes sense to consider speaking with a realtor first. As indicated by research from the National Association of Realtors, 44% of home buyers start by looking at properties, while another 17% goes directly to a realtor.
This statistic probably doesn’t come as a surprise to most people. Nonetheless, first-time homebuyers are better off beginning the process with a lender. It’s better to talk to a lender first because you’ll need to know how much you can afford and how much you will be spending on the house over time before buying a home.
Talking to a mortgage lender first will not only help you better understand which loans you can get, but it will also make it easier to find interested sellers and real estate agents.
Here are a few reasons you should talk to a home loan lender before you begin the house-hunting process.
Set Realistic Expectations
You don’t want to go through the disappointment of finding the perfect house only to realize later that you can’t afford it. Speaking to a lender and getting approval first will show real estate agents and sellers precisely what you can afford.
Stay Flexible to Shop Around
Even if you are pre-approved for a loan, it doesn’t mean you necessarily have to stick with that lender. You can continue searching for loans from other lenders to find the best rate. To keep your credit score high, do your loan shopping over a short period. When lenders pull your credit report multiple times over a couple of weeks, it will only count as one inquiry.
Finish Your Paperwork Sooner
It takes a lot of paperwork to complete a loan, including your tax returns and W-2s, pay stubs, and bank statements. Starting this process earlier will make it easier to finalize your loan and reduce the seller’s chance of pulling out due to mortgage complications.
Talk to a Mortgage Lender Today
Ready to talk to a mortgage lender today? Contact us now to get started!