Realtor vs Mortgage Lender (First Time Home Buyer's Guide)

You want to buy a house. Should you call your mortgage lender first or your real estate agent? I answered that in January 2025, and I think the real answer is that both do a different job.

Start with the agent. A good real estate agent has a crazy job. It can be super stressful, and despite all the news about commissions this year, I think they earn every penny. For a buyer, an agent helps you open the door of a home and helps you avoid ones that could be problematic. I have seen agents preview everything on the MLS, door knock to find the perfect house, and build relationships with brokers so they hear about coming-soon homes that are not on Redfin or Zillow yet. Once you find a property, your agent helps you negotiate the terms of your offer, which is one of the most important parts of the contract process.

Your agent should be clear, direct and firm. Here is a story. I know a couple who looked at a home, and their agent told them it was listed at $400,000, already had four offers, and to be in the running they would need to write about $420,000. Like many buyers wanting a good deal, they said they wanted to write at $400,000 and see. A bad agent says okay. A good agent says: it is my job to tell you the truth, and if you write less than $420,000 there is no way you will be taken seriously. I will write it if you want, but if this is the house that checks all the boxes, do not lose it over a $100 a month difference in your payment. That is what a good agent will do for you. Once you are in contract, they help you through inspections, which are critical. Professionals look for termites, foundation problems and window seals, so you know what you are buying.

Now the lender. A lender helps you determine how much house you can buy and the best product for your situation. There are loan programs with 20% or more down, programs with no money down, and programs where you can finance things like solar or renovating the home after you close. You need to know that before you start looking. You come away with three things. Your purchasing power, because there is no sense looking at million dollar properties if you are at $500,000. A proper budget, because you may be able to buy at $500,000 but be more comfortable at $300,000 for your family's budget. And an understanding of the process ahead. A lot of buyers say they had a bad experience with their lender or realtor, and I think it usually comes back to that third step. If a lender skips telling you what to expect, it can be one of the most stressful things your family ever does. It does not have to be.

So who do you call first? I do not think it matters. A professional agent will connect you with the right lender at the right time, and a lender will gladly give you a list of the best agents in your market.

If you are ready to learn your purchasing power, start with first-time buyer options or get your rate. MortgageOne is now licensed in 49 states.