As you start searching for homes or apply for a mortgage, you’ll meet many people throughout the process of buying a home. It can be overwhelming but one of the best ways you can prepare yourself is learning about who is who beforehand.
Buyer
The homebuyer is self-explanatory. This is the person who is searching for and planning to buy a home. In other words, this is you. Think of it as being the main character in this process and everyone else is your supporting cast.
You’ll be responsible for communicating with your loan officer and real estate agent, submitting necessary documents, filling out and signing paperwork and paying for all the necessary costs of your loan.
It’s important for you to understand what you can afford, get your finances ready and know what you want in a home.
Seller
A home seller is anyone who puts up their home for sale. They’ll often have a real estate agent representing them who will be communicating with your real estate agent. This person will be accepting or denying your offer or negotiating the offer with the help of their real estate agent.
Keep in mind that the seller might not always be the person who currently lives in the home since the property could be owned by an investment company or bank, for example.
Mortgage Lender
The entity giving you a home loan could be a bank, credit union or independent lender. No matter what institution you choose to work with, a professional mortgage banker or loan officer will then guide you through the process. They will be responsible for walking you through each step, answering your questions and informing you about what you can afford.
They are often the first person you’ll meet in the homebuying process. If they’re an experienced professional, you may also be able to ask for referrals for other professionals you’ll need to enlist, like a real estate agent.
Buyer’s Real Estate Agent
This will be the real estate agent you’ll be working with. Whether they’re an agent, broker or REALTOR®, this professional will work with you to understand what you want in a home, find properties that fit your needs, schedule tours and help negotiate your purchase.
A reputable real estate agent will know how to look for any structural flaws, be knowledgeable about various locations and neighborhoods and have some negotiation strategies under their belt.
Seller’s or Listing Real Estate Agent
This real estate agent represents the seller of the home. They will be helping the seller find and negotiate with serious buyers. Not only will they help negotiate the price, but they could also help with any other negotiations including post-inspection or repair requests.
While you might not ever meet the seller’s agent, it’s important to understand that they’ll be making decisions based on the seller’s interests.
Home Inspector
After you make an offer on a home, you’ll likely want to hire a home inspector. While this may be optional depending on the type of financing you are using, a home inspection is often a smart idea as the home inspector will be able to take a deep dive into the property’s structure, facilities and components to determine its condition.
The results of a home inspection could change your negotiations or even make you walk away from the property and help prevent you from spending more money on big issues.
Appraiser
Before you close on a home, your lender will typically require a home appraisal from a professional. This person will determine the property’s fair market value to ensure that you’re not overpaying for the home and that the lender isn’t lending too much money to you.
Appraisers conduct research on the property’s condition, properties in the same area and recent sales to help determine the home’s value. Like a home inspection, a home appraisal could affect your negotiations or make you withdraw your offer.
Title Company
The title company and title agent are responsible for conducting research on the title of the property to make sure there are no issues with your sale. They could look for things like liens, legal claims, overdue taxes, zoning restrictions or mortgages against the home. This helps ensure that you’re protected in the purchase. After this research is complete, you’ll receive a title insurance policy, and the title company will file the new title record.
Home Insurance Agent
Since your home will likely be one of the biggest investments you’ll make in your lifetime, it’s important to find home insurance that works for your needs and that protects you financially.
Home insurance helps cover any damage or loss to your home, such as during a fire or robbery. While standard home insurance doesn’t typically cover natural disasters like earthquakes or flooding, you may be able to add this coverage by speaking with your home insurance agent.
Familiarize Yourself with These Key Players
There’s no doubt that buying a home can be nerve-wracking. However, you must remember that there’s a team of professionals on your side. Throughout the process, you’ll meet many people who are there to help ensure that your sale goes as smoothly as possible and help get you closer to homeownership.
This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to your individual situation.
