After several years of diligently saving money, I’m nearly ready to purchase my first home. Because I’ve been thinking about buying a home for so long, I know exactly what I want my house to look like. I desire a place that has three bedrooms and three bathrooms. I also need a quiet space to set up my home office in. I want a massive, walk-in closet in my master bedroom. My master bathroom needs to have double vanities, a tiled, walk-in shower, and a Jacuzzi tub. On this blog, I hope you will discover how to set priorities during your new home search. Enjoy!
A New Home Search
5 Reasons To Talk To A Lender Before Finding A Real Estate Agent
Elli Jokela
Many home buyers want to jump directly into looking at homes and worry about finances once they have a better idea of what they want in a home or once they have a specific home that they would like to finance. Online listings make it easy for people to estimate how much a house would cost and calculate various loans for a home. However, there are several reasons why you should go to a bank and get pre-approved for your loan before you find the real estate agent you want to work with.
You May Qualify for a Special Deal or Program
Most banks offer specific rates based on your credit score and current financial needs. This makes it difficult to calaculate your exact loan rate and monthly payment without talking to a lender. Additionally, there are many special programs that can help reduce the overall cost of your loan or make you eligible for a larger loan. For example, there are usually programs for first time buyers, veterans, and low-income individuals. While some of these programs are federally funded, most vary from state to state and county to county, so it is important that you talk to a lender in your area about programs that may be available to you.
You Will Have a Better Understanding of the Costs Associated With Closing
The costs associated with buying a home can be complex. You may have to pay a down payment as well as fees for certain inspections, permits, or other items. While a real estate agent can tell you the specific closing costs on a property, you will need to talk to your lender about the closing costs associated with your loan. Speaking with both a lender and a real estate agent will allow you to determine the exact closing costs for you, so you will be able to decide on the best loan and property to fit your budget.
Some Real Estate Agents Work With Properties in a Specific Price Range
It is always helpful to know how much you can spend on a home before you begin looking because it will help you look at properties within your price range. Some real estate agents specifically work with low-cost properties or luxury properties. Knowing what your price range is will help you find an agent that has several properties listed within your price range.
Most Real Estate Agents Prefer to Work With Pre-approved Clients
If you are pre-approved for a housing loan, it shows that you are serious about buying a house in the near future. This can make real estate agents want to work with you. For example, if a new house comes on the market that is likely to sell quickly, a real estate agent will likely show it to their pre-approved buyers because they can move more quickly when it comes to putting in a bid and closing on the house. This makes it more likely that a real estate agent will get their commission. If you are not pre-approved, a real estate agent may still agree to show you properties, but you may be less of a priority for them.
Getting Pre-approved May Speed Up the Closing Process
Once you find the home you want, you may want to close on it quickly and move in. This can be done much more quickly if you are already pre-approved for a loan and have your lender selected. Your loan application will likely take less time and you will find closing to be an easier, smoother process.
If you have not talked to a lender yet, your real estate agent will likely encourage you to do so before you start looking at houses. Taking their advice can save you time and prevent stress in the buying process.
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