Should You Find a Lender or a Realtor First When Buying a House?
Hey everyone! If you’re dipping your toes into the home-buying process, one of the first questions that might pop up is: Should you start by finding a lender or a realtor? My name is Shawn Yu, a realtor based in Portland, Oregon. I might be a bit biased since this is my world, but I’m sharing my honest take on how I’d approach this if I weren’t in the industry. The answer might surprise you.
The Importance of Lenders and Realtors: Who’s More Crucial?
The truth is, it depends. Both play pivotal roles in your home-buying journey, and choosing poorly in either can have serious financial repercussions. Let’s break it down.
The Risks of a Bad LenderA subpar lender can hit your wallet hard over the long haul. For instance:
- They might saddle you with a higher interest rate (say, 0.5% to 0.75% more) or excessive fees (like an extra $4,000 in loan costs).
- This adds up in interest payments over 10, 15, 20, or even 30 years, potentially costing you tens of thousands.
The damage from a bad lender often lingers for the entire life of the loan, making it a long-term financial burden.
The Risks of a Bad Realtor
On the flip side, a poor realtor can cause immediate headaches:
- They might lead you to overpay for a property.
- Or overlook critical repairs and issues during inspections, leaving you with unexpected costs post-purchase.
While these issues can sting your finances, they’re often more short-term—think impacts within the first seven years or so.
The Upside: What Great Professionals Bring to the Table
Now, let’s flip the script and talk about the wins when you find top-notch pros.
Benefits of a Great Lender
- They could secure you a better rate (even a quarter to half a percent lower), saving you big on interest over time.
- Lower upfront fees mean more cash in your pocket for closing or other expenses.
Benefits of a Great Realtor
- Skilled negotiation to get you the best price.
- Thorough identification of potential property problems, so you avoid costly repairs after moving in.
- Protection against short-term risks, like needing to sell unexpectedly in a few years—they ensure the home holds value and doesn’t force a loss.
As you can see, the right lender and realtor can make a massive difference in your overall experience and financial outcome.
So, Which One Should You Find First?
Here’s the twist: Don’t pick one over the other—pursue both at the same time. Start by Googling and reaching out to at least three lenders and three realtors. Interview them all to compare:
- Professionalism and knowledge.
- Reliability and communication skills.
This approach gives you valuable comparison points. Plus, there’s a bonus: Cross-recommendations. A reputable realtor might point you to an excellent lender you hadn’t considered, and vice versa. Experienced pros often have networks that can lead you to hidden gems. I wish I could simplify it further and just hand you one magic contact, but the reality is more nuanced. Investing time upfront in finding the right team will pay off hugely in the end.
Wrapping Up
If you’re in the Portland or Oregon market and have questions, I’m here to help—until I retire! I’ll be dropping separate posts (or videos) on how to vet lenders and realtors, especially if you’re house-hunting in a new state. Make sure to subscribe or bookmark this blog for those updates. Thanks for reading, and I’ll catch you in the next one! If you found this helpful, drop a comment below—what’s your biggest home-buying question?
Shawn Realty 