04 Apr First-time home buyer? Should you talk to a real estate agent or a broker first?
You are a first-time home buyer. You have a stable job and good credit history. Buying a house will most likely be the most important purchase of your life. Most people in this situation don’t know if they should speak to the real estate agent first or if they should contact a mortgage broker. This is quite normal. The hardest thing for many first-time home buyers is getting started. Many wonder what to do in order to start this process. What you absolutely don’t want to do or shouldn’t do is find a house first, although it seems to make the most sense.
Reality is, the financial side of this process can sometimes feel like a nightmare. Let’s face it! All of a sudden, people begin to talk to you about principal, interest, taxes, insurance, prepayment penalties… The list goes on. However, if you have a solid mortgage broker to guide you through the process, you will do very well in the home-buying process. In addition to helping you find the best deal, a mortgage broker is also an invaluable resource to understand how this complex undertaking works.
So, to return to our original question, a broker should be the first person you talk to. When it comes to financial matters, your mortgage broker will be the person, alongside your real estate agent, eager to guide you through the home-buying process of which finding you a loan is just a part. In other words, your mortgage broker should be the go-to person on all aspects of the transaction, as he/she will be able to provide you with personalized advice about the whole process.
Besides being your go-to person, the mortgage broker can help you figure out the best legal way to fund your down payment. Your broker is an expert in financial regulations involved in buying a home. He/she is well equipped to acquire the best financing available given your specific needs, can take care of all the financing issues and logistics of the mortgage, and have access to a wide range of lenders.
Most people don’t see a broker before they start going to open houses and finding a realtor – but they should. Not only does this give you a realistic picture of the loans available to you, but it makes you more attractive to sellers and real estate agents alike.