Though in home buying, transaction occurs between two parties – buyer and seller - but in reality, more parties are involved in such transactions. In fact home buy/sale involves several tasks, responsibilities of many members. In a nutshell, home buying is a team effort. Each member has to perform his/her role effectively in order to make home buying transaction a successful one. Here we briefly discuss about the different parties involved in a home buying deal along with the role played by each of them-
1. Real estate agent
While purchasing a home, you can take the help of a real estate agent. A responsible real estate agent won't work to grab higher commission but will try to find out the best deal for the client. The agent will give some alternative solutions to the client so that the client can pick the best one. A real estate agent is entitled to several tasks. Agent is responsible for ascertaining your home buying requirements and to keep you updated about the current property market trends. The agent should explain all the processes and practices involved in the home buying process to you.
2. Mortgage personnels
Mortgage professionals work under the aegis of the lender. The amount of loan that you can qualify for, your monthly mortgage payment amount etc are determined by the loan officer. As per the Good Faith Estimate (GFE) norm, loan officers are responsible for disclosing all the costs associated in a loan to the borrower. The onus of collecting and organizing the loan approval documents of the borrowers lies upon the loan officer. The loan officer is also responsible for sending the documents of the borrowers to the underwriting departments.
3. Home inspector
It is recommended that before purchasing a home, you should get the home inspected by a professional home inspector. The home inspector checks whether there are structural issues, maintenance problems and other defects with the property. After obtaining the report of the home inspector, you can make a well-informed purchase decision. Based on the report of the home inspector, you can negotiate on certain aspects of the purchase contracts. Home inspection is required to safeguard the interest of the home buyers. It is the responsibility of the home buyer to hire a professional home inspector before purchasing a home.
4. Home appraiser
Home appraisal is very important in an home buying transaction. A home appraiser is responsible for determining the current market value of the property. The amount of the loan offered by a lender depends upon the appraised value of the property.
5. Insurance agent
In case of mortgage transaction, homeowner's insurance policy is required by the lender. Such insurance policy protects the property from theft, fire and other damages. An insurance agent is required for this policy.
6. Title and escrow officers
In home purchase transaction, title officer and escrow officer are very important. A title officer does the title search and checks whether any lien is attached with the property. Escrow officer, on the other hand, is responsible for receiving, signing and notarizing the final loan documents.