House shopping is unlike any shopping experience you’ve ever had before. Moreover, not only is buying a home one of the most important decisions that you will ever make, but the homebuying process can be complex and a little overwhelming.
Numerous factors can impact your ultimate buying decision, including the current housing market, your budget, if you want a fixer-upper, how far you’re willing to commute, or just having the right timing.
However, having a reliable support system and knowing and understanding the roles of those involved in the process of getting a house will help things go even smoother.
With that in mind, let’s look at some important parties involved when getting a house.
Real Estate Agent
Some buyers have a real estate agent in mind before they even start looking. It could be a family member, someone that was recommended, or maybe even an agent whose photo they saw in an ad on a shopping cart in the grocery store! Other buyers will do some online searching first and then contact the agent for more details. As a buyer, it’s important to have an agent on your team.
A real estate agent will help find homes within budget, negotiate a fair selling price, and provide support throughout the offer process.
Seller’s Agent
If a homeowner doesn’t sell their home privately, they are represented by a seller’s agent AKA listing agent.
They will provide insight into pricing, set up MLS listings, organize showings, and negotiate offers from buyers.
A seller’s agent charges a fee which is typically a percentage of the selling price. That fee average fee is often split with the buyer’s agent.
Loan Officer
The first point of contact you’ll have with a mortgage lender is a loan officer. They will be your “go-to” person and primary point of contact throughout the mortgage application process and will help make things easier for you. Your loan officer will inform you about any documents you need, go over your loan options, and maintain a working relationship with you even after your loan is approved.
Since they will be reviewing your personal financial information, it’s comforting to know that you are working with someone knowledgeable and trustworthy. Moreover, having a single point of contact and the expertise they provide is one of the many benefits of working closely with a loan officer.
Underwriter
The necessary documentation gathered by your loan officer during the initial application process is then moved to the underwriter. They will analyze your financial documents, verify your credit history, and determine if the home you want to buy is within budget.
An underwriter may also require you to provide a higher down payment or a co-signer for the loan for approval.
Home Inspector
A home inspection is required by almost all mortgage lenders and is usually paid for by the buyer. Their primary concerns are if a house is safe to live in or if there are any problems or necessary repairs.
Expect your home inspector to show up with a ladder and flashlight. This is because they also check out the foundation, the roof, as well as the electrical and plumbing systems including heating and cooling.
A new buyer doesn’t need to walk into a recreation of the movie The Money Pit so if the home inspector finds any problems, the buyer can renegotiate with the seller accordingly.
Appraiser
If you see a crowd gathering at your potential new home, it’s because the appraiser will also visit the house to do a room-by-room walk-through. However, in this case, their job is to determine the current value of the property for the buyer.
Typically, mortgage lenders require a certified home appraisal to ensure that it’s worth what is being paid for it as well as to provide their professional opinion on its value.
If the appraiser determines that there is a considerable between your home’s worth and the requested mortgage amount, the deal may be denied, or a bigger down payment will be required.
Title Agent
Closing day is a big day because you’ll get tossed the keys for your new abode. But right before you do the new home dance, you’ll meet the title agent. They will sign the title over from the homeowner to the buyer.
They will oversee the closing process, purchase contract paperwork, and collect the closing costs. A title agent is important on closing day because mortgage lenders require title insurance.
Loan Servicer
This is a person whom you’re sure to maintain an ongoing relationship with long after you’re finished measuring the drapes. This is because your loan servicer handles the day-to-day tasks of managing your loan. They are responsible for sending you your mortgage statements, overseeing your mortgage loan repayment, and answering any questions that might arise.
Knowledge is Power
These are a few of the important individuals involved when getting a house and each one plays a crucial role.
Gaining a better understanding of what their roles are will make you feel more at ease with the entire buying process.
Have questions about any aspect of the home-buying process? We’re happy to provide our expertise to help guide you from start to finish.
