Buying your own home is one of the most biggest and valuable investment you’ll ever make in your entire life. This is a time-consuming process , engaging different parties who are associated to make your dream happen. All of these people provides a team effort and commitment to make your home buying experience smoother as possible.
1. BUYER
The purchaser of a house who takes out the home loan and who is also bound to pay off the entire mortgage including interest and other expenses.
2. SELLER
The person(s) or entity who are the actual owner(s) of a property and providing the property for sale.
3. MORTGAGE CONSULTANT (Loan Officer)
The best person with whom you can start off the loan process is named as the loan officer. He is also known as the mortgage broker, mortgage consultant or originator. The loan officer will check your credit reports, evaluate your current financial status, and other statistics to decide how much house you can possibly afford, and what your monthly payments should be. A mortgage consultant can also get you pre-approved for a mortgage, it’ll later help you to start negotiation with the seller.
4. REAL ESTATE AGENT
After clearing the process with the mortgage loan consultant, you need to start your house hunt with the help of a real estate agent. An experienced, professional real estate agent gather required information from the loan officer and as per the given criteria makes a list of properties according to your budget and requirement. The real estate agent can become your strongest asset at the time of negotiating a price. The agent also has good contacts with appraisers, inspectors, and other people who are related to the real estate world and your home buying process.
5. TITLE INSURER
A Title insurer is a professional who examines and insures the clearance of the title of a property and encumbrances. He also checks and verify legal documents related to the sale.
6. LOAN PROCESSOR
The loan processor is fully responsible for preparing and organizing the mortgage application file and forward it to the bank or mortgage lender to get the approval. Basically, a professional loan processor reviews and verifies the documents which have been prepared by the loan officer. The loan processor will verify your income, your debt obligations, current job status and any other important details required for completing the loan approval process. The loan processor will push your file through the underwriting process to closing.
Your mortgage consultant helps the loan processor to check every information of your loan is accurate, verified and on schedule. The loan processor will look after the appraisal for your property, verify your tax returns, and re-check all the documents required to smoothly process the loan to scheduled closing.
7. UNDERWRITER
Underwriters provide personal care to each application file and check their qualification criteria. They ensure that the loan program is suitable for the borrower, they validate the application as per the loan guidelines and also check the repayment strength. The underwriters issue the approval against suitable application.
8. APPRAISER
You must do the appraisal of your home by a professional appraiser. An appraisal is a part of the listing process and the lender will require it during the loan process. The appraiser will check each part of the home and surroundings in detail to provide an accurate value and price for the property.
9. INSPECTOR
After making the offer, and before closing the mortgage, you may appoint an inspector to inspect the property. The inspector would decide whether your home is safe and any major problem free or not. He will also determine if you need any major repairs in the future or not. If the inspector finds anything suspicious or any major problems in the property, it may be a turning point for the deal. Many buyers may reject the deal as they’ll lose interest in that disputed home. Buyers may also alter their offer by checking the inspection report. Ignoring the inspection report may cost a lot of money in future maintenance or repairs.
10. CLOSER
The closing and funding department look after the closing related documents and also secures loan funds. The department also process a clean closing by communicating with the title company. The department reviews your documents and verifies if the papers are accurate. After the verification, they provide authorization to settle and record the transaction.
11. FEDERAL GOVERNMENT
The federal government offers many lucrative mortgage funding options to the home buyers who can’t afford the 20% or more down payment. FHA loans (provided by the Federal Housing Authority) and VA loans (provided by the Veterans Administration) are two of the top financing option that federal government offer to the consumers.