Who’s On First?

Buying Property in Israel: Should You Call a Mortgage Broker, a Lawyer or a Realtor First?

A mortgage broker, a real estate lawyer and a realtor walk into a bar. A prospective homebuyer recognizes them and waves them over.

“Perfect! I’m buying an apartment in Israel. Who’s first?”

“Me – I’m First Israel,” says the mortgage broker.

“No, I’m not asking where you work. I’m asking who I should speak to first.”

“That depends,” says the lawyer.

“On what?”

“On what you need first.”

“That’s what I’m asking!”

“Perhaps start with me,” says the realtor. “Do you know what you’re looking for?”

“Yes,” says the buyer. “A straight answer.”

With apologies to Abbott and Costello, buying property can sometimes feel like a routine in which everyone knows their role—but nobody has explained the order.

You might expect a mortgage brokerage to answer, “Us, obviously!” But different situations call for different starting points. The first professional you contact should be the one who can resolve your biggest uncertainty.

If Financing Makes or Breaks the Purchase: Start With a Mortgage Broker

If you cannot complete the purchase without a mortgage, understanding your financing should come before falling in love with an apartment.

Israeli purchase contracts generally do not include a mortgage contingency clause. Unlike in some other countries, you usually cannot withdraw without penalty simply because the bank declines your mortgage. Such protection must be specifically negotiated and written into the agreement; never assume it exists.

Once you sign, you are committed to meeting the contract’s payment obligations—even if the financing you expected is unavailable. Failure to pay can expose you to substantial contractual compensation and other consequences.

That makes establishing your financing arrangements before signing essential. A mortgage broker can assess your eligibility, help obtain an approval in principle and identify outstanding requirements before you commit.

Knowing how much you would like to borrow is different from knowing how much a bank will lend you. Your income, existing debts, age, residency status and available equity can all affect your options. Foreign income or complicated finances may require additional preparation.

Your budget must also cover purchase tax, legal and brokerage fees, renovations and other expenses. Money allocated to these costs cannot also serve as your down payment.

An approval in principle is important, but it is not an unconditional guarantee of funding. The bank still needs to accept the property and complete its requirements, including an appraisal where applicable. Your broker and lawyer should coordinate before signing to ensure that the financing arrangements and contractual payment schedule are compatible.

If Legal Questions Could Determine the Purchase: Start With a Lawyer

Sometimes the first question is whether the proposed purchase is legally workable.

Perhaps the property involves an inheritance, unclear ownership, an unregistered extension or complicated registration. Perhaps you are buying with family members and need to decide how ownership should be structured. Your tax position may also materially affect the transaction’s affordability.

In these situations, an independent Israeli real estate lawyer may be your best first call.

The lawyer can identify what needs investigating, explain the implications and determine whether other specialists should be involved. Resolving these questions early can prevent you from investing time and money in a purchase that cannot proceed as expected.

Even if everything appears straightforward, your own lawyer should review the property’s legal position and the agreement before you sign. The seller’s lawyer represents the seller; you need someone protecting your interests.

If You Need to Understand the Market: Start With a Realtor

What if financing is comfortably available, there are no known legal complications, and your main question is simply, “What can we buy?”

A knowledgeable local real estate agent may be the logical starting point.

You may have a budget but little understanding of what it buys in Jerusalem, Netanya or another community. You may be comparing neighborhoods, apartment sizes, older buildings and new developments.

An agent can help turn a general wish list into realistic options and explain local pricing and availability. That market education can help you adjust your budget, location or expectations.

Starting with an agent does not mean postponing financial or legal advice until after negotiations. Once a purchase becomes a serious possibility, involve the other professionals promptly—and before making a binding commitment.

Different Starting Points, One Coordinated Team

The practical rule is simple: start with the professional who can resolve your biggest uncertainty. Then bring the others into the conversation so their advice works together.

At First Israel Mortgages, we help buyers understand their financing options and coordinate with their lawyers and agents, so the property, contract and mortgage fit together.

You do not always have to call First first. But before you commit to a purchase that depends on financing, make sure you know how you will pay for it.