Choose A Realtor or A Lender First?

On April 13, 2010, in Uncategorized, by David Monsour

I’ve heard both sides of this argument, but I think I’ll make my own. The first step before looking at houses is always to call and lending institution and get prequalified for a loan. This way you know the maximum amount you can spend to purchase a house and a pretty good idea of what the monthly payment might be. At this point you should review your finances and see what your comfortable paying because you don’t have to pay the maximum allowable amount.

This argument would lead you to believe that finding a lender first is the best way to go about the process. I respectfully disagree with this statement, although I do enjoy a person that has taken the initiative to get prequalified before our first meeting. Lender’s, like Realtors, are not all created equal. A quality Realtor has the ability to assist a buyer in finding a good lender. I do not like dealing with banks for mortgages because bank employed lenders typically work 9-5. Most real estate transactions do not take place during those hours. People like to look at homes after work or on weekends, and having a loan officer that isn’t available can really slow down the process.

What if you make an offer on a Friday night and you’re competing with someone else and you need to know if you can go a little higher and what your new payment will be, or what if you just need a prequalification letter to send along with the offer…if the lender isn’t available you might have to wait until Monday and could lose the house.

The digital age we live in today usually results in people looking for houses online, contacting a realtor, and then finding a lender. Most realtors are fine with this process and have lenders just a phone call away.

If you’re looking for a home in Gettysburg, PA call me and I’ll point you in the right direction. I’m familiar with all of the available loan products and can suggest a few lenders to handle each scenario.

 

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