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The Lender Or The Real Estate Agent: Whom Should You Contact First?

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When purchasing a new home, it's important that you speak to a local real estate agent. It's also important that you secure a loan, preferably a preapproved one. But which of these should represent the first thing you do?  You should probably consider securing a real estate agent first. Here's why.

A Real Estate Agent Can Help You Find a Lender

Securing a loan can become quite the frustrating process. A real estate agent can help you find the right lender that won't have you hopping over lines of red tape.

A local agent will already know which lenders many in the area have used successfully in the past. An experienced agent will already have come across someone in a similar situation as you. Maybe that person was able to procure a loan in the area.

A real estate agent can save you time and hassle on finding a loan. The agent may already have a rapport with local lenders, or a list of mortgage lender referrals. In fact, you may find a loan strictly based on the agent's relationship with the lender.

A Real Estate Agent Can Guide You Through the Home Buying Process

Purchasing a home can become a complicated process. There's several steps from beginning to end. Each of those steps have rules and things you need to watch out for. While a lender can help a little, a real estate agent can help a lot.

While you're pursuing a loan, you're not doing much else by way of purchasing a home. In contrast, while your agent helps you find a lender, he or she is also facilitating various other parts of the home buying process. Or, to put it another way, a lender can point you in the right direction, but a real estate agent can guide you through it, step by step.

A Real Estate Agent Can Help You Figure Out if You're Ready to Start

Many people approach lenders first only to find out they're nowhere near ready to apply for a mortgage. A real estate agent can help you ascertain if you're ready or not. They can also let you know what you may need to do in order to make yourself ready.

For example, the agent can help you figure out what percentage of a down payment you will realistically need for a place in the neighborhood you're interested in. They can let you know if your credit score is adequate for the local lenders, and how much you need to build it if it isn't.

The choice is still up to you. You can go directly to a lender, but you may want to consider at least interviewing a few real estate agents first to see what they have to say about your prospects for purchasing a new home. For more information, contact companies like Celia Dunn Sotheby's International Realty.