What Comes First: Getting an Agent, Finding a Home, or Getting Qualified for a Loan?

New buyers (and buyers who have been out of the market for a really long time) often ask which they should tackle first: finding the right agent, finding the right property, or securing a loan? Each of these has pros and cons in terms of which they are done...here is a quick pro/con approach.

Finding an Agent First
PRO: A good agent can steer you toward the right local lender, help you narrow down neighborhoods quickly and get you into properties, all while providing insight and information.
CON: If you get an agent too soon, you'll be wasting their time when you're not ready and you may find an agent that is a better fit for you as you become more serious.

Finding a Property First:
PRO: You avoid having to drag an agent around (or be dragged yourself), and you can then spend time checking out the property before taking on the hassle of completing a loan application, only to find out something that would make you turn the property down.
CON: If you're new to town or unfamiliar with the area, it may take a while to find the right place, and the place you find may have hidden concerns that you won't find out about until much later. Also, if you're not pre-approved before finding a place first, you may discover later that you're not qualified financially to afford it. And it's hard to look in a lower price range.

Applying for a Loan First:
PRO: You find out your credit score, can clean up any negative issues (which can take weeks or months to resolve), and get a true sense of what you can afford so you don't waste time looking at things out of your price range.
CON: Once you get approved, if you don't find something quickly, you'll need to check in periodically to let your lender know if anything in your life has changed that would effect your credit position.

So, what do I recommend to my clients? Find an agent and apply for a loan at the same time. There is a lot of inventory, and homes come on and off the market every day. If you find a house and then it takes a week (or more) to get your loan application completed and deal with any issues, the home may be off the market. Agents know which lenders in town do a great job and which ones are schmucks, so getting a recommendation is always a great idea. Likewise, it's a good idea to spend time with an agent looking at property so that if you need to find a different agent who is more compatible with you, your location and your style, you have time to do that before you find the right home.

More from this contributor:
The Difference Between Assisted and Unassisted Residential Real Estate Home Showings
What's Better? An Attached or Unattached House?
Buying a Home? Five Reasons Why You Should Insist on a Home Warranty Before Closing