When you’re ready to make the move to homeownership, you’ll work with several business professionals. It’s important to understand what they do because they’re interests can differ from your own.
You can use this chapter to familiarize yourself with business professionals you’ll encounter in the home buying process.
Who will you meet during the home buying process?
Once you’ve decided to become a homeowner, developed your budget and saving plans and evaluated your financial situation, you’ll find several different business professionals are part of the home buying experience. You’ll be the star in this performance, with a varied cast of supporting players. You may not meet each of them face-to-face, but they all play important roles.
Table 7-1: Who’s Involved in Home Buying and Selling?
|Loan officer||A financial professional who will determine approximately how much money you’ll be able to borrow for a mortgage loan.|
|Mortgage lender||The business person or financial institution that provides the money you’ll use to purchase your new home.|
|Mortgage broker||An individual or organization that brings together mortgage lenders and borrowers.|
|Loan servicer||An organization that handles the day-to-day management (i.e., collecting, billing, and record keeping) of your loan.|
|Real estate agents, brokers & Realtors||Trained professionals who are licensed to negotiate the sale and purchase of real estate.|
|Home seller||The property owner who puts a home up for sale.|
|Home inspector||An individual who provides a trained, professional opinion of the physical condition of a home and its components and systems.|
|Home appraiser||An individual who provides a trained, professional opinion of the market value of a home.|
|Insurance agent||A financial professional who provides protection against the risk of monetary loss.|
|Title company||A company that examines public records to determine that rights to a property can legally be transferred from one owner to another.|
Please note that in some of the different legal documents that are part of the purchasing process, you may be referred to as the Grantee, or the Mortgagor. The home seller may be referred to as the Grantor, and your mortgage lender may be called the Mortgagee. Although the names may be different, the roles remain the same in each case.