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Lender or Agent: Who should you talk to first?

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For most first-time buyers, one of the most difficult things about the home buying process is figuring out how to get started. Many end up wasting time at the start, getting stuck wandering around in circles while thinking about what to do next. While looking at homes seems like the very first thing you should do, the best move during this stage is to get in touch with a professional first.

The question is, who do you talk to first, a lender or a real estate agent? To put it simply, it’s best for first-time buyers to get in touch with a real estate agent first before looking for a mortgage lender. Getting a loan is important, but keep in mind that your mortgage is only part of the transaction.

An agent can help you find a good mortgage lender

Working with a real estate agent at the start of the home buying process will help ensure a smooth and stress-free experience. Additionally, you can rely on a real estate agent to help you find a mortgage lender, rather than expecting a lender to help you find an experienced and knowledgeable agent. Most agents already have a selection of lenders in their referral database, as well as lenders they’ve already worked with personally in the past.

Real estate agents will also refer mortgage lenders with proven records, lenders who they know have what it takes to close loans. Most mortgage lenders, on the other hand, might refer only agents who send them business, which doesn’t really mean anything as far as quality of service is concerned.

How choosing an agent before a lender gives you an advantage

In addition to having lender referrals, a real estate agent can also help match the type of loan you’re looking for to a lender who specializes in that particular type of financing. Agents, especially those who have years of experience in your area, know which specific lenders perform well and which ones tend to hold up closing – information that’s difficult to obtain on your own.

Another huge benefit to working with an agent before a lender is your agent will most likely refer a local lender. There are some home buyers who end up working with lenders based in another city, sometimes in a different state. Keep in mind that real estate is local – working with a non-local lender can put you in a disadvantageous spot during offer negotiations.

A real estate agent will guide you through the home buying process

In addition, your agent will also help you figure out whether it’s the right time for you to buy. Agents will talk to you about the pros and cons of choosing a particular neighborhood. Your agent will listen to your ideas, and will help decide the right course of action. Most importantly, your agent will be right there with you as you navigate through the entire home buying process, helping you make the right decisions and avoid potential pitfalls.

Want to work with the best real estate agents in the Coachella Valley? Get in touch with California Lifestyle Realty today at 760-564-1200, or send an email to info(at)califestylerealty(dotted)com.