Find the right representative and he/she will have quality lenders to refer you to that should give you the VIP treatment coming in as a referral.
Then go get pre-approved and you are ready to start looking.
Lance King/Owner-Managing Broker
King Realty Group
The answer is go to the lender first. The Lender will need to have a conversation with you. You will have to provide your personal information to determine if you will be prequalified , at this point they will get your permission to run your credit. The next step in the process is preapproval which requires you to provide the documentation. Copies of your ID, 2 most recent years W2's & tax returns, bank statements, any other asset statements you may have such as, 401k, IRA, Stocks, Pension Plans, CD's.....
When you get prequalified & preapproved, you will know exactly what you options are, how much house you can afford, then you should go out looking for your home with a realtor. You will be a better buyer and offer on a purchase with a preapproval letter from the Lender would be taken seriously. Smart Realtors only spend their time and gas showing buyers who have already been preapproved.
Can you afford to purchase a house? This a lender will tell you and pre qualify you.
You can do this online or consult your bank lending department.
A realtor will ask you what price you want to stay under ?
Better Homes & Gardens Gary Greene, Realtor Katy/Houston
Fax: 281-646 1841
"The highest compliment I am ever given is when
I am referred to your family & friends!"
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Additionally, some agents will want you pre-qualified before they even show you any property as a matter of protecting their time invested. At the very least, being able to tell your future agent that you are pre-approved should hold their attention and view you as a serious and motivated buyer.
I have come close to losing a client last year because my clientâ€™s agent strongly referred them to a lender they preferred. My last client told me the agent tried so hard to have them switch from me to their lender they felt something fishy and thought there might be more to the story. The company agent referred them to; rate was higher and fees $2,000 higher. That agent told client they could beat me easy and they didn't need to come back to me as they were safe with them (used car sales talk). They couldn't come close to what I gave client (rates where the same the day I quoted as when they got quote from other lender). The agent tried one last move to get client to her mortgage referral by stating her preferred mortgage company has top appraisers and they will get the best appraisal with them(hard sell and BS political type talk). I closed the loan early and my appraisal came in above value and my clients got the best deal. They said they will not be referring that agent after that experience.
I see this once and a while so don't just rely on the referral from your agent. In this case I found out the mortgage company the agent was referring pays desk rent at their office and shares some advertising so the agent needed to send a certain amount of clients to this lender to keep that desk rent and advertising dollars coming in. The agent steered clients to a lender that would have cost her clients thousands more dollars.
Be aware and shop 2-3 lenders. Maybe use 1 bank, 1 direct lender and 1 broker to get quotes and their opinions. Brokers tend to have more programs and easier qualifying and lower fees for any given rate. But this depends on the individual broker or direct lender and loan program. Most banks are not that popular with agents unless that agent gets feed business from that bank (then of course they like the bank). If you deal with a bank I suggest Wells Fargo. Direct lenders: The Mortgage House and imortgage are popular. Broker: Myself at C2 Financial. (I'm told we are 2nd largest wholesale broker in the country We have many other good lenders in town to choose from. Service comes from the loan officer, rates and fees come from the company.
When shopping lenders try and get quotes from the same day and ask if rates have changed that particular day when getting quotes. Use the rate the first loan officer gave you and ask them what the adjusted origination fee is for that particular rate. (Adjusted origination is all the lenders fees and credits combined, it does not include escrow or other 3rd party fees that are not related to lender). That's basically how you know how to compare loans with adjusted origination fee which most lenders don't disclose until you get Good Faith Estimate when you are in contract. Ask the lender to give you a copy of the rate sheet they quoted you which shows cost or credit for all rates. I always email the rate sheet with my quoted fee sheets. Also ask the lender how long itâ€™s taking to close similar loans and what would cause a delay. Ask how fast they order appraisals and put the loan into underwriting. Ask the lender and agent for 3+ insurance referrals. Also ask what your actual real taxes will be after the loan closes. If they canâ€™t answer this then move on.
There are a lot of good answers to your question and we all vary in opinion. If you ever want a fee sheet along with rate sheet from me, then send email to firstname.lastname@example.org. I need to know some detail before I can send quote. i.e. Is this owner occupied, FICO credit scores, credit issues?, Down payment and where that is coming from, Condo or detached residence, etc. I can give quote from that info but that doesn't mean you qualify without me looking at income and assets and cash to close, etc.
Mark R. Barrett, Loan Officer
DRE LICENSE #: 01438387, NMLS #: 279056
Please feel free to call me at 661.809.8425
Thanks---Brad Barnett, GRI/Broker Associate
Prudential Tobias, REALTORS
A few of the previous comments bring up shopping around for a lender, I call that swatting flies. Last month a prospect went with another lender and now they canâ€™t get the deal closed. The problem of shopping for a lender is the buyer selects only one or two items to shop for, interest rates and closing cost for example, and that isnâ€™t the big picture. If you call enough people eventually you will find one that will say what you want to hear. What if you â€œfindâ€ a lender that quotes closing cost that are $200 better than another lender is quoting, good deal, huh? The cheap guy doesnâ€™t look at the big picture and it ends up costing the buyer $10,000 in extra interest, does that example sound like I pulled it from a real life experience? It should.
Donâ€™t swat the flies and get crushed by the elephant.
My advice is to find the best Realtor, one that you trust and then have them introduce you the lender they trust the most. Donâ€™t even listen to that garbage if they tell you they must give you 3 names, you want the one they trust the most. Why would anyone want #2 or #3?
NMLS # 6395
Financing Kentucky One Home at a Time
Doing so will help you by establishing a price point with which you can focus your search which will in turn help clarify your target locations. It will also streamline the offer process once you have identified the property you will be going to contract on.
Agents always like to hear that their customers have take the initiative to make financial arrangements before coming to them.....good question.
Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.
Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.
Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.
Put together your Team of real estate professionals and shop 'til you drop!
*If you thought my answer was helpful, please give me a â€œThumbs Upâ€ or â€œBest Answer.â€ Thanks!
It's the most efficient use of time and the best way to get off on the right track.
Continuing story regarding the chickin or the egg...the lender or the agent.
Perhpas a peak behind the curtain will remove the discusson out of the phiosophical realm.
Here's some breaking news regarding those 'big lenders."
This is not about Bank of America but Chase. The "TO BIG TO CARES" all have common attributes. This artical reveals one of the common elements. It is intregral to the ambush all of the 'To Big To Cares" have waiting.
Imagine what would happen to your home owning prosepcts if in some befuddled state someone stumbled into the lobby of Chase.
Start with your real estate professional and avoid the headaches and heart breaks.
Every one wants to be first!
Some to control the situation.
Others to control you.
And a few who want to provide you the most reliable options to acheive your goals.
An Example: You, in a state of utter confusion, walk into the lobby of Bank of America and get yourself some mortgage papers that say,,,"You can qualify for a loan up to $300,000 with $30,000 down. (total $330,000)
You find yourself a home that 'speaks to you' in a hidden away community where few homes ever come on the market. Nothing has sold or been available for over 18 months. You negotiate a price of $305,000 for this home.
Your real estate agent knows this home will never be yours if you use B of A.
The sellers agent knows exactly the same thing if they are not in a state of utter confusion.
Because B of A did not know what you are buying they can't and of course won't reveal they will inject themselves into the negotion process and create demands that can not be resolved.
Some lenders/brokers want to be first in line BECUASE they will compel the agent to whom they refer you, to pay a fee (disguesed as rebates or to offset the lenders fees).
Had you followed the recommendatin of your real estate consutant, they would have identied the lender who has the agiliity to circumvent or avoid entirely the predictable ambush B of A will attempt.
Your real estate consultant wants to position your pruchase offer so the seller can SEE the assurance of a closing that will be on schedule, under budget and drama free. We do this dozens of times a year. The obstacles in the road ahead are related to the real estate you choose and the agility of the lender involved. The wrong lender results is huge disappoiintment, lost money, high anxiety, growing frustration...and who will you blame? Your real estate agent. You see, we are the most invested in a successful outcome. We are the ones you will see most often. We are the face of this real estate transaction. The selection of the wrong lender DOES impact what happens in the end. We already know to whom blame or creadit will be assessed.
Think about it. How can a smooth closing be promised if the purchase subject is not identified? If, however, the lender will FULLY COMPENSATE you for your costs, missed closing date, tempeory housing costs, inspections and appraisal fees, now you just might have a lender who shares in the same goal you have. Since this lender DOES NOT EXIST, you should consider begining with those who are most invested in your success.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
It seems most folks are answering your question on chicken vs. egg basis. When it comes to real estate, I think the agent comes first. A truly competent REALTORÂ® will partner with you at the center of the transaction. It is your REALTOR'sÂ® responsibility to help you throughout the entire transaction, explaining the processes, putting you in touch with service providers (including lenders) and advising you on the pros and cons of each decision.
As a REALTORÂ®, my least favorite part of the process is looking at houses...but it is absolutely necessary in order to meet your goal of getting moved! The more important parts are advising you on the effect of contract choices, negotiating on your behalf, and overseeing the transactional details so that the process is as smooth as possible.
In order to accomplish this, I work with a team of preferred professionals, so that I can help my clients find the right lender, escrow company, inspectors, repairmen, insurers, etc.
Because buying a home is one of the biggest financial transactions of your lifetime, it makes sense to spend some time first choosing the professional that will help you with the entire process. If you have questions that you would like to talk about directly please feel comfortable calling me at 661.375.REAL
Hope this helps!
There's no harm in contacting Realtors and selecting who you want to work with while being pre-approved for a loan...
but ultimately, you can only make smart purchase choices once you know your price range.
Of course you want to shop around for a home loan first. I would love to help you find a home! Please let me know if you ever have any questions regarding the home buying process?
You can call or text me at 661-240-0161
Jennifer chou/ Realtor
Tholco Real Estate Group
Bakersfield, ca 93312