5 Reasons You Need to Talk Your Lender First

Before beginning the home search, talking with a lender is a crucial move. Not only will you know the exact amount of home you can afford, but you’ll also have all your necessary documents in order, which gives you an advantage in a competitive real estate market. Our team often works with homebuyers who are uncertain about when to speak with a lender, or buyers who don’t reach out until later in the process.

We’ve laid out five reasons below why it’s not only a smart decision to speak with your lender first; it’s necessary.

1. Match Your Budget to Your Home

You should have realistic expectations before beginning your home search. Talking with a lender first can ensure that you’re looking in the right price range. Blindly shopping around without knowing your budget can be a big waste of time and set you up for heartbreak if you’ve found a home you love but can’t actually afford. Talking with a lender can help match you with financial programs that can maximize your purchasing power while minimizing your out-of-pocket expense.

2. You’ll Receive a Referral to a Trusted Realtor Partner

A lender you trust is important when it comes to finding a trustworthy realtor. Lenders who are local to the market will have better knowledge of the local real estate community. So, instead of finding a random realtor online, your lender can refer you to an agent who both specializes in the area you are looking and the type of home you are looking for. An experienced lender will have plenty of agents they trust and have worked with in the past, so they can easily refer you to a realtor that they know will be a great match for you.

3. Puts You at a Competitive Advantage

Getting pre-approved before the home search is a great strategic move when it comes to buying a home. In a nutshell, a conditional approval letter will help your offer stand out because it shows the seller that you can act quickly and are confident in your negotiation. Being prepared and knowing your financial limits can help eliminate any sense of doubt a seller may have in mind because it shows that you are serious about buying the home.

4. Expedite the Home Buying Journey

The mortgage application process can take some time, even for more experienced home buyers. Once approved by a lender, you may be able to close on a home in as little as two weeks. Having all the paperwork done and out of the way before house hunting lets you settle on your dream home right away without worrying about any potential roadblocks.

5. Help Control Your Financial Future

While a relationship with a realtor typically only lasts a short while, a relationship with your lender lasts the length of your mortgage. That’s why it is important to find a lender you have a good relationship with and trust in handling your finances. A good lender will also reach out to you if rates drop and give you an opportunity to save money through a refinance.

If you have additional questions regarding your financing or general questions about the home buying process, be sure to reach out to our team. We’re always happy to help you on your path to homeownership.