Buying a home entails more than just choosing a property from listings and settling in. It can be an enormous task, that’s why it’s wise to hire pros to help you along the way. But who do you turn to first: the lender or a real estate agent?
The ideal sequence is often to get pre-qualified with a lender and speak with a real estate agent for the home search and purchase process—both at the same time!
The Lender will provide you with a clearer understanding of your financial standing.
Speaking with a lender helps you get clarity on how much you can actually afford. They will evaluate your financial situation, credit score, and other factors to provide you with a pre-approval or pre-qualification. This information is crucial for establishing a realistic budget for your home search.
Whether you are a local homebuyer or a homebuyer in another part of the United States, you definitely need to secure lender pre-qualification (or even pre-approval) before shopping for homes for sale or before writing an offer. Of course, that’s not the case if you are paying cash for the property that you want to purchase.
Pre-approval benefits include:
- Gives you the financial check up to know how much can you afford.
- Avoids the disappointment of falling in love with a home that you later discover is outside your financial capability.
- Allows for a more focused home search and saves you time.
- Better negotiation power. Sellers may be more willing to negotiate with buyers who have secured financing.
The Lender will educate you on various types of loans.
Lender programs and guidelines change all the time. There are so many other loan types besides the conventional loan namely FHA, USDA, and VA. Perhaps you are not familiar with these loan types and they are the best sources for these types of information. They can help you figure out which one best fits you and let you know about the process and the steps you need to take in order to qualify.
They will inform you of the additional costs of a home purchase. Aside from the cost of the home itself, there are other fees to consider such as closing costs and mortgage insurance.
While working with your lender, it is best to involve a real estate agent in your home search. Real estate agents play a crucial role in helping you find and negotiate for a home, and more.
Having both a lender and a buyer’s agent in your arsenal ensures a smoother and more efficient home-buying experience — bringing you closer to the home of your dreams.
If you’re looking for the best lenders and real estate agents in San Diego, feel free to reach out to our team for recommendations!