Professionals You Should Know During a Real Estate Transaction
Getting ready to buy a home? Cliffco Mortgage Bankers has assembled a short list and description of the 6 professionals you will contact in a real estate transaction. Even if this isn’t your first time buying a home it’s good to brush up on the process of buying a home and people associated with it.
Typically, the first professional you’ll encounter in the home-buying process will be a licensed loan officer at your lender of choice. This process may begin with a phone call or an in-person visit to a bank or mortgage brokerage. The loan officer will ask you a series of questions about your income, debt, assets, and credit rating. In addition, you will need to provide recent pay stubs, W2s, bank statements, etc. so that you can be pre-approved for a mortgage. This step should ideally be completed before you begin shopping for a home, as most sellers and real estate agents will not take you seriously as a buyer without a prequalification letter from a lender.
You may seek the help of a real estate professional to assist you in finding your ideal home. For many buyers, these professionals are indispensable in the process of narrowing down the sea of options, or finding alternate options should there be a shortage of available homes in their desired area. In addition to helping you present the smartest offer, realtors and real estate agents often have easy access to licensed home inspectors and exterminators who perform termite and other similar inspections.
Your lender will require you to have title insurance that serves to protect them in the event of a title issue. A title officer will be assigned to review the history of the home’s ownership, as well as any present or past liens against the property, outstanding taxes, easements, etc., all of which could delay or prevent closing.
Once your offer has been accepted by the seller, the lender typically assigns a home appraiser to assess the home in order to provide a valuation. The appraiser will consider the size and condition of the home, recent sales of similar homes in the area, and other factors to arrive at this number. The home value assigned by the appraiser directly impacts the amount of mortgage you will qualify for.
Prior to signing a contract to purchase a home, it is a good idea to enlist the services of a home inspector, who will go through the home with a fine-tooth comb in order to uncover any existing flaws, such as leaky roofing or plumbing, faulty electrical wiring, or aging HVAC systems. Buyers can often use the findings of the home inspector’s report to negotiate repairs or monetary concessions to be made by the seller prior to closing.
One of the final stops on the way to home ownership is obtaining homeowner’s insurance, which is required by the lender. As you get closer to closing, you must contact an insurance agent who can help you figure out the amount of coverage and type of policy you’ll need. This individual can also provide proof of insurance to your lender.
For more information on the process of buying a home, contact Cliffco Mortgage at (516) 408-7300.