Do I Need a Real Estate Agent or Local Lender?
October 27, 2023
If you want to apply for an FHA mortgage, there are several choices to consider besides the size and configuration of your new home.
Are you house hunting in the same area where you currently live? Your need for a real estate agent might be different from if you were house hunting in an unfamiliar city or a new state.
When it comes to considering the use of a local lender, online lender, broker, or other home loan options, your choices might also depend on whether or not you already have a trusted lender, if you’re relocating, or other factors.
When to Consider Using a Real Estate Agent
Borrowers who feel comfortable negotiating or haggling might not need a real estate agent.
But if you are less than thrilled about going it alone, consider using a real estate agent who has a reputation in the local area you can research and verify. How does the realtor fare in the online reviews?
Avoid the reviews that simply praise or complain without detail, but pay attention to the reviews that mention specifics. Especially if those reviews are within the last six months.
Beware a real estate agent who seems to overlook crucial details, who doesn’t seem to care as much as you do about important features of the home or one who fast-talks you through the answers to questions you might have.
Consider a real estate agent who seems detail-oriented and cares about your house-hunting journey. You want someone with an outgoing personality who cares about your experience.
When to Consider Using a Local Lender
The advice here is less definitive. Why? Because, at the end of the day, you want to work with the lender who offers you the most competitive rates and terms. That might not be the bank in your zip code.
You don’t have to use a locally-based lender to buy your home. Some believe it makes a difference to “buy local,” but it may be time to explore your online options if you aren’t getting competitive rates from your local lender.
Sometimes, a local option may be preferable when using a state-based down payment assistance program, as these often rely on a local network of participating financial institutions. In these cases, you may have better luck with a local lender than online.
But there are many variables, and it’s wise to explore and compare all your options accordingly.
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RELATED VIDEOS:
Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
Are you house hunting in the same area where you currently live? Your need for a real estate agent might be different from if you were house hunting in an unfamiliar city or a new state.
When it comes to considering the use of a local lender, online lender, broker, or other home loan options, your choices might also depend on whether or not you already have a trusted lender, if you’re relocating, or other factors.
When to Consider Using a Real Estate Agent
Borrowers who feel comfortable negotiating or haggling might not need a real estate agent.
But if you are less than thrilled about going it alone, consider using a real estate agent who has a reputation in the local area you can research and verify. How does the realtor fare in the online reviews?
Avoid the reviews that simply praise or complain without detail, but pay attention to the reviews that mention specifics. Especially if those reviews are within the last six months.
Beware a real estate agent who seems to overlook crucial details, who doesn’t seem to care as much as you do about important features of the home or one who fast-talks you through the answers to questions you might have.
Consider a real estate agent who seems detail-oriented and cares about your house-hunting journey. You want someone with an outgoing personality who cares about your experience.
When to Consider Using a Local Lender
The advice here is less definitive. Why? Because, at the end of the day, you want to work with the lender who offers you the most competitive rates and terms. That might not be the bank in your zip code.
You don’t have to use a locally-based lender to buy your home. Some believe it makes a difference to “buy local,” but it may be time to explore your online options if you aren’t getting competitive rates from your local lender.
Sometimes, a local option may be preferable when using a state-based down payment assistance program, as these often rely on a local network of participating financial institutions. In these cases, you may have better luck with a local lender than online.
But there are many variables, and it’s wise to explore and compare all your options accordingly.
------------------------------
RELATED VIDEOS:
Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
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