WHO SHOULD YOU CONTACT FIRST?

Should you start with a real estate agent or loan officer?

It is best to see a real estate agent first or start with both at the same time. A real estate agent can help you establish the property type that works for you by going out on a few showings to get your feet wet. The best loan for you can be dependent on the property type, location or condition. 

Starting with a loan officer first can get you pre-approved for the wrong type of loan. For instance, a loan officer may pre-approve a client for an FHA loan without knowing that the buyer is looking for a home that they might want to fix up a bit. Many fixer-uppers are not approved for FHA financing due to conditional restrictions. It can also be common for a buyer to get pre-approved for a loan that will not work in the area they are looking to buy in or for a loan that could eliminate many condos and townhomes. This can ultimately cause you to lose your dream home to another buyer that has pre-approval for the appropriate financing. 

Once you figure out with your agent what property type, areas and condition you are interested in, you’ll want to start the home loan application process right away. An early loan application can do nothing but help you in the process. The application process will help you figure out what loans and programs may be available to you. It may also give you an idea if there is anything you can do with your credit rating to help reduce your interest rate. Finally, it is the only way to get the approval letter you will need when you find the home you want.

Interested in more, essential home buyer information?  Download The Smart Homer Buyer now.