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As a first time homebuyer, not knowing anything about buying a home, where do I start? Realtor or Loan Officer??

 

Real Estate Question : As a first time home buyer not knowing anything about buying a home, where do I start?

what you shouldn't do as a first time homebuyer

 

 

The question above was something I just read on Trulia's questions and answers section.  I was very shocked at some of the answers that were given from realtors. Let me start by saying that this is merely my opinion. No, I am not always right and don't claim to be, but some questions should not be answered by a realtor and or a loan officer. Sorry, that is a fact and I will stick by this statement. 

 

 

 

My Opinion : You are walking a very fine tightrope if you talk to anyone but a qualified loan officer first in regards to the question above.

 

So what answers did I read that I felt were bad advice?

walking a tightrope

 

Realtor : "The best place to start is with a buyer consultation. I can explain to you what the steps are to buying a home and what you should expect."

Jeff Belonger (loan officer) - Having the realtor qualify you first? It doesn't matter if the realtor knows some things about mortgages. Speak to the loan officer about the mortgage process.  Please read : What questions should be asked when qualifying a borrower?

 

Realtor : "Referrals are always a good source."

Jeff Belonger (loan officer) - I will agree and disagree with this statement. Yes, if the person referring was previously a borrower who had a good experience with a certain loan officer.  Are all referrals from realtors good?  No... Just because your realtor says that their loan officer is great or that they are cheap, doesn't mean that this could be a good source for you. I have many real life examples. I am dealing with an Active Rain realtor at this moment who had to relocate to Florida because her husband got a good job. Well, they used her husband's friend from the old neighborhood who recommended his loan officer of choice. Less than 2 weeks later, she was referred to me by Brian Brady, another AR member, who read her plea for help on Facebook a few days ago. People, this stuff happens. My advice, interview your loan officer before you jump in bed with them. Please read : Interview your realtor and or loan officer

 

Realtor : "Searching for homes to get an idea of areas and type of home is a great idea and place to begin. Search around and have some fun looking. When you are ready you will know."

Jeff Belonger (loan officer) - Hold your horses.... why would you even look at a home, without knowing what you are qualified for or what it would even cost you. Just because you plugged some numbers into a mortgage calculator? Do you know anything about mortgage insurance? Besides, I have known homebuyers to fall in love with a house and then push themselves financially to buy that property.  It's important to have a mortgage payment in mind before shopping for a home.  Please read : What kind of mortgage payment are you comfortable with?

 

 

 

In my opinion, here were the 3 best answers from 3 different realtors out of like 16 realtors.

Realtor # 1 : "You should find a reputable mortgage company that you can sit down with and find out what you can afford, not what you can get approved for. Make sure the payment would be with in your budget not the realtors budget or the mortgage companies."

Realtor # 2 : "First step is get a pr-qualification from a reputable mortgage lender or bank. Knowing right from the beginning what your purchasing power is helps eliminate looking at homes out of your reach and saves valuable time for everyone involved."

Realtor # 3 : "Your first step should be to sit down with a mortgage representative to determine, not only what you qualify for, but what montly payment you are comfortable paying. You may qualify for more than you actually wish to spend. The next step would be to sit down with a Buyer's Agent to discuss your needs and wants."

 

Jeff Belonger (loan officer) - I don't know it all and won't claim to, but my biggest pet peeve is a loan officer qualifying a borrower without first asking the borrower what mortgage payment they would feel comfortable with. People, so what, you qualify for more.  Are you comfortable with that mortgage payment?  It's what you are comfortable with in regards to that mortgage payment.  It's not having the best or cheapest interest rate. I was called out by another loan officer saying that this was a poor method when speaking to a borrower. Please read : What kind of mortgage payment are you comfortable with?

 

 

 

Buying a home should be pleasant and enjoyable

 

first time home buyers

Conclusion : I won't deny that it's great when you can find both a loan officer and a realtor that work together, both making your dream come true. Many will say that it takes a team effort. Yes it does. But those involved don't necessarily have to be on the same team and or know each other. Just remember that all referrals aren't always the best choice. Don't be afraid to do some research yourself.  Feel comfortable and never feel guilty that you might hurt someones feelings if you choose someone else. It will be your house, not theirs.  Don't let others lead you around astray, especially if you don't feel comfortable.  Have fun, but just be careful.

 

 

Does the REALTOR have the right to even pre-qualify you as a borrower?

 

 

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Experience & Knowledge at its BEST !!!

 

 

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For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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follow Jeff Belonger on Twitter

 

The FHA Expert's fan page on Facebook     Add Jeff Belonger to your network @ LinkedIN

                                                                            FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

Follow me on:

Mortgage Myth Busters

 

______________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

Comment balloon 81 commentsJeff Belonger • February 25 2010 08:37PM
As a first time homebuyer, not knowing anything about buying a home,…
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Real Estate Question : As a first time home buyer not knowing anything about buying a home, where do I start? The question above was something I just read on Trulia's questions and answers section. I was… more