When buying and selling a home, if you’re carrying or intend to carry a mortgage, you’ll need to decide who to meet first your REALTOR® or mortgage lender?
If you’ll be selling to buy another home, then it makes sense to visit with your REALTOR® first. Because using the funds from the sale of your home towards your purchase determines how much you’ll borrow. You’ll need to know the value of your property before talking with your mortgage broker, bank or lender. Agents specialize in this and can provide an accurate expected sale price. In addition, it’s easier to talk about financing once you know how much equity you already have.
On the other hand, if you’re buying and don’t need to sell your home, for example, you’re keeping it as a rental, or you’re a first-time buyer. You’ll want to speak with a mortgage specialist before meeting with a real estate agent. This is different from buying and selling simultaneously because your purchase isn’t dependent on your equity from your sale. When just looking at purchasing a home, you’re better off working with your lender to determine your budget first, and then, you’re prepared when meeting with your REALTOR® with your budget in place; your agent can guide you to the suitable properties to consider.
In summary, who to meet first, REALTOR® or lender, depends on your situation. Remember, we’re always here to help with any questions, even when that question is about who you should talk to first.
