Are you prepared to buy your first home? If yes, you might be hunting for a skilled real estate agent. There are so many reasons to hire a real estate agent. Meanwhile, there are plenty of reasons to hire a lender. It is important to understand your current financial situation. Before you look for properties, you must be aware of your finances. Can you handle a property worth thousands of thousands of dollars? Or, do you need some more time?

In this short article, you will understand why a lender should be hired before a real estate agent.

#1 Critical Financial decisions
First of all, properties are major financial decisions. The transaction can impact your life for a very long time. If you are planning to buy your first property, you must analyze many things. That is why you should take lenders seriously. An experienced lender can help you make smart financial decisions. Their expertise and knowledge will push you forward in the right direction. Remember, it is not the job of a lender to stop you from making a buy.

#2 Affordability
Moving on, the lender will help you understand how much you can actually afford! A lot of people invest in properties that are too expensive or cheap. This is because they are unsure about how much they can really afford. Nothing can be heartbreaking than an investor falling in love with a property and running short of funds. This is why you must look for properties that fall within your budget. By hiring a lender, you can discuss and finalize your budget. Next, you must approach a real estate agent with this budget in mind.

#3 The Process
Lenders analyze finances in two different ways. One, they begin pre-qualification procedures. Very few lenders offer this feature. Pre-qualification involves exhaustive reviews and credit reports. They will dig into your income and other credit sources. The lender focuses on items with a valid address and a ratified point of contact. You will qualify for a home mortgage only when this verification is done. The estimated loan amount is likely to change after a pre-qualification review, Two, lenders engage in conditional approval. As suggested by its name, the loan amount gets approved to a certain extent. Home buyers must look for properties within a limit. You will receive an exact loan amount (approval) at the beginning. Many real estate agents prefer conditional approvals. They consider conditional approvals as a safe tool for home buyers.

#4 Down Payment
Do you wish to review your down payment methods? If yes, you need a lender! The moment your lender approves your loan amount, you must sit down and focus on your down payment options. Low down payment means a bigger mortgage. And, a huge mortgage can destroy you for decades. It will stretch your entire budget.

#5 Closing Charges
Moving on, lenders take into consideration the closing charges. Buying a property is never simple or straightforward. You must be prepared to face any additional charges. This includes charges for credit reports, insurance, mortgage documentation and more. It is important to keep these charges in mind. Closing a deal can cost much more than what you imagine. Lenders will ensure if you have adequate money for these charges.

By understanding your actual financial situation, you will save lots of time and money. In the long run, you will be able to avoid unnecessary surprises. In fact, lenders can help you stay on track and within a budget. 

On the whole, you must hire a lender before a real estate agent. Lenders are important players in the home buying process. Most of the time, they are real lifesavers.