Should We Talk To A Realtor Or A Bank First?
Q: My boyfriend and I are thinking about buying a house. Should we talk to the bank first or a Realtor? I don’t even know where to begin…
A: Finding a mortgage and getting pre-approved BEFORE starting the home shopping process is the only intelligent way to go in my opinion. Buyers and their agents that choose not to do so are like shoppers that head to the mall without their wallets. It might be an interesting experience, but it won’t be very productive.
The first step in purchasing real estate and one that should be required by all real estate agents before showing property to prospects is to get their buyer pre-approved for a mortgage. Getting a mortgage, or rather getting pre-approved for a mortgage, lets a buyer and his agent know what he can to afford when looking for a home. It is critically important for a potential buyer to go through the pre-qualification steps and learn exactly what is required to secure a mortgage.
Buyers have many options to choose from when looking for a mortgage. There are banks, mortgage brokers, finance companies, credit unions and private lenders. Often experienced Realtors have in-house mortgage brokers or direct lenders that they work with frequently. Talk to your Realtor and look for a lender that has high standards, a good reputation and a verifiable track record. Don’t be afraid to shop around for the best deal either as mortgage costs can vary greatly.
When looking for a mortgage have a good idea how much you can afford to pay each month. Look into the past, present and future to determine this. It is of the utmost importance not to bite off more than you can chew when it comes to your finances and the affordability of a home that you are considering purchasing.
When applying for a loan an individual (or married couple) must provide documentation of income, expenses, and assets. Have your financial statements and tax returns ready and the process will be much easier.
Having a lender ready to go before finding a property will make the entire process smoother. Financing is harder to get these days and being prepared is always a wise first step in the home buying process.
Contact Peninsula Properties Realty, we can get you in touch with the right people!