Mortgage Banker or Realtor — who do you speak to first?

A Mortgage Banker and a Realtor are the two most important people involved in the purchasing of your home. If you are unfamiliar with the home buying process, you may not know which of these two professionals to speak to first. Read below, and we’ll shed a little light on this question and offer some practical advice to help you make a wise decision.

Realtor

If you love the thrill of visiting open houses, you are likely to become familiar with the realtor/real estate agent. The agent you meet at a location is the seller’s agent. You will need to find your own realtor to act as your agent so they may help you find exactly what you are looking for. Finding, securing and speaking to an agent before speaking to a mortgage banker has a few advantages:

• They can give you a good overview of the types of homes that are currently available, and how much they cost.
• They can, in most instances help you determine whether you have saved a high enough down payment to purchase a home.

While these advantages are great for those who really love the thrill of house hunting, you won’t be armed with enough information and financial support to make a strong offer on a home you fall in love with. This could lead to losing the home of your dreams.

Mortgage Banker

Because purchasing a home involves numerous financial and legal considerations, speaking to a mortgage banker before you begin the house hunting process will put you in a good position to confidently shop for a home. Consider these advantages:

• You can secure a pre-approval for your mortgage (link to previous blog post), which will make you more attractive to sellers.
• You will learn the true costs of buying a home
• You will have a mortgage team in place so you can act quickly on a home you are interested in.

The only disadvantage to speaking to a mortgage banker first is that you may have to delay house hunting for a short period of time while you determine how much you can afford to pay for a home. That may not be such a bad trade-off, considering once you speak to one, you can shop confidently.