This
really is the Chicken or
the Egg scenario. Do you get a Realtor and see if you like
what kind of
homes
are even in the price range you are thinking before finding a lender or
do you find
a lender to see what you qualify for before you even start looking?
Here are my thoughts on this and these are only my thoughts. If you have a relationship already established with a lender or a Realtor, then go with them first. Here is the reason I say that. If you have a relationship with a lender, then they may be able to give you some great advice with a great agent they know. Now, the same can be said about a Realtor that you have a relationship with.
You see, both of these fields require networking with each other and both fields have worked with ones they like and they don’t like. So, if you have a relationship with only one of the two, then go to them and ask them for their opinion. I bet they know some great people in the other field.
But, if you don’t have a relationship with either, check the internet and find a Realtor that is knowledgeable in your area and that you like. Since you are going to be working closely with this person for the next few months, and once you have chosen a Realtor, ask them who they suggest for a lender. I guarantee you will want to use someone they recommend rather than finding someone they have never worked with before.
If
you are in the market for
a new home and would like someone to guide you through the process of
that home
purchase, please feel free to give me a call. I have a great team in
place that
can help you buy that home and make it feel comfortable to buy rather
than
ending up having second thoughts throughout the whole process.
Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739
©2009 Todd Clark - The Chicken or the Egg? Should you get a Realtor or a Lender first?
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
What if there was a way you could search the MLS for FREE just like Realtors
Now you can access the MLS using similar tools as Realtors. You are in control of what you want to search for, and you can search the MLS at your leisure. The information you submit in the form below can also be used to put you on an automated system where you'll be emailed all homes that meet your search criteria. You'll get internet access to a website that includes pictures, prices, and addresses to real estate that's listed in the MLS!
Yes, work with the one you trust to locate a reputable professional in the associated field. I'm always happy to recommend my go-to lenders that get the deal done.
Ditto!! I love your chicken pic.
Todd: What an excellent recommendation. Relationships in real estate are so important... so I agree with you. If you have a relationship with either a Realtor or a lender... go with them, and get another recommendation for a lender or a Realtor. Thanks for presenting it so well. Take care...
Absolutely, I love my mortgage guy - he is just like me, so it works great. Keep's me informed of any issues and he is a pleasure to work with. I send most of my customers to him for pre-approval, some have pre-approvals (so they say)...
I think I'll go with the egg on this. LOL!
I agree - if you have a strong relationship - exploit it for all its worth. However, without a ongoing lender relationship you should always find a REALTOR first. The REALTOR will be coordination the entire transaction - right through the close of escrow. If you are using the agents lender, that lander wants future business from the agent so your loan will remain near the top of the pile throughout the entire process.
However, when the agent and lender have never worked together in the past, it is a long shot to think they will establish a long listing relationship. therefore, the lender will prioritize their resources (including TIME) to sources of repeat business.
Good post
I totally agree it's important to have a good TEAM of Realtor and lender who work together. By sharing information, you can potentially structure a better offer by using some seller credit to buy down the rate, but only if it is priced attractively - and only the mortgage broker will know that by analyzing the rate sheet of the preferred lender.
Also, as a mortgage broker, being a broker, I offer to refer the buyers I attract to my favorite Realtor - so the buyer can get the best of all worlds. The mortgage broker can legally receive a broker to broker referral fee, and thus pass on a wholesale rate and not charge a loan origination fee.
This is a great deal for the buyer. So, as a mortgage broker who has successfully used this technique many times, my vote goes for getting the mortgage broker first. It insures a compatible team - and that is very important as mentioned by everyone above.
Todd... Great points... relationship drives everything and as real estate transactions get more and more complicated because of all the layers of regulations etc... If you can work with a realtor and lender that know each other... your more than half way home!
First the REALTOR then the egg. The REALTOR may know (or should) which lender to send you to.
That may not always depend on working relationships. It may depend on what kind of loan you need.
The REALTOR might even send you to more than one lender...with your first credit report in hand for the second appointment so as to (1) not detract from your credit score and (2) create some enthusiasm for getting you the best rate.
What ever lender a good REALTOR might send you to will very likely ACTUALLY get you "pre-approved" -- up to a letter of commitment -- as soon as possible. A REALTOR will likely not send you to a loan officer who will not get that done ASAP.
That puts you as a buyer in the very best position to negotiate price and/or compete with multiple offers (at lower price points in my market) .
Boy, it makes it so much easier and saves time when they are at least pre-qualified. I don't like finding out that (A) we are looking in the wrong price range for them or (B) they can't even get qualified.
Good advice the comfort with the people you work with on this can make all the difference.
Todd - I agree that an established relationship with either professional is the best course of action. Second best thing would be a referral of either profession from someone you know and trust. Hopefully, this person you know and trust will refer you to people they know and trust regardless of whether or not the two referrals know each other or have ever worked together.
Barring that, if you don't already have a relationship with a Realtor and/or lender and you don't have a referral for a Realtor and/or lender, then I would strongly suggest that you start with getting pre-approved with a lender that you have researched and interviewed.
Going to a Realtor and looking at properties that you think you can afford may end up being a waste of time for both you and the Realtor. Besides which, nowadays, most Realtors won't show property to a prospect that isn't pre-approved for this exact reason.
Todd - I agree. If you know someone, go with them and ask their opinion for the rest. This question comes up a lot... who should I get first? In most cases, the customer will find the Realtor first. Certainly, I think they should get qualified first. Find out what you can afford before shopping.
What a cute graphic, Todd. If you have a relationship with a realtor or lender go to them and get a recommendation for a lender or a realtor.
Todd - One professional referring another professional is the best way to find an excellent lender or Realtor. The last thing I would do is give a bad referral, I rather give no referral if I don't have a top notch expert.