Buying a home is exciting, but when you start the process, you could quickly get overwhelmed by the number of people involved in the transaction.
There’s more than you and the seller.
Here are the key people you’ll deal with when buying a home.
The People Involved in your Purchase Transaction
Every purchase transaction is different, but here are the key people you’ll likely come across when buying a home.
A real estate agent, a loan officer, a home inspector, appraiser, underwriter, title and escrow.
A real estate agent helps you find the right home for you and your family. They will also help you negotiate the price of the home.
A loan officer helps you get approved for a mortgage.
A home inspector looks for any problems with the home that could potentially cost you money in the future.
Title and Escrow handles all of the paperwork involved in purchasing a home.
Apprasier evalulates the home and provides a value.
We talk about each in more detail below.
More info: The home-buying process
Real Estate Agent
The real estate agent is a key factor in finding the perfect home.
Buyers don’t pay any fees to use a real estate agent; the seller pays the fees, so it’s a service you shouldn’t overlook.
Real estate agents help you find homes, negotiate the price and terms, and see the deal through to closing.
You might have access to more homes or have early access to homes that just hit the market if you use a real estate agent.
Mortgage Loan Officer
When buying a house, the mortgage loan officer is your main contact and is responsible for pre-approvals, answering questions, and providing information about down payments, loan types, closing costs, etc.
Your loan officer is the go-between for you and the mortgage underwriter.
You’ll talk to the loan officer about getting pre-approved and throughout the loan process to get your loan closed.
Mortgage Underwriters
Mortgage underwriters work behind the scenes.
Their job is to ensure you qualify for the mortgage and assess the risk of any potential problems regarding defaults on a mortgage.
They evaluate the documents you send in, such as your paystubs, W-2s tax returns, asset statements, and employment information.
One of the main things they do is to ensure that the loan meets the guidelines the lender sets.
This includes verifying the borrower’s income and employment and reviewing the property itself.
They approve the loan and provide final approval to close.
Home Inspectors
A home inspection isn’t required when you buy a home, but it’s a great way to protect your investment.
A home inspector is a professional who evaluates a home’s functions, letting you know of any significant issues the house has to help you decide if you still want to purchase the home.
They will look for any major problems that could cost you a lot of money to fix.
They look for any problems that could make the house unlivable or unsafe.
Including things like mold, mildew, water damage, and structural issues.
They also check for any pest infestations or other problems that could make the house difficult to sell.
The home inspection report can be lengthy, but you’ll know everything about the house and its condition.
Read: home inspection vs appraisal
Title/Escrow
The title and escrow companies play many roles in the home-buying process.
First, they handle the paperwork and money related to the purchase.
Second, they do a title search to ensure there aren’t any liens on the home.
Liens follow the property, not the owner, so you want to avoid buying a home with liens.
Third, they facilitate the transfer of property ownership from the seller to the buyer.
The title/escrow company also oversees the closing process, ensuring all documents are correctly recorded and the funds exchange hands as instructed in the contract and loan documentation.
Appraisers
Appraisals are typically required when buying a house with a mortgage.
Your loan won’t be able to close until the lender knows what the value is of the home.
The appraiser’s job is to determine if a home is worth at least as much as you offered.
If the appraiser determines the fair market value is less than the sales price, you may back out of the deal or make up the difference in cash.
The appraiser will consider the size, location, age, condition, and features of your home, as well as recent sales of similar homes in your area, to come up with a value for the house you purchase.
An appraisal can give you peace of mind that you’re paying a fair price for the property, or it can help you negotiate a lower price if the appraised value is less than the asking price.
Read: The appraisal process
Many people are involved in the home purchase process, but each plays an important role.
With the help of each of these professionals, you’ll ensure that you buy a safe and sound home with no liens and that you qualify for financing.
The home-buying process can take 30 – 45 days after you sign a contract, but it allows enough time to handle every piece of the puzzle.
Are you ready to apply? Start the process by completing the form below.