Understanding Mortgage Paperwork

Posted on: 30 November 2017

The world of real estate can be stressful and confusing for many home buyers. The process of buying and owning a home is often a mystery, yet it is often the most important purchasing decision that most people will ever make. The good news is that there are many people involved in the task that are available to guide you through it all.

1. Buyer's Agent: First and foremost, work with a buyer's agent. This person is a licensed Realtor who is under contract to help you and look out for your best interests. Part hand holder, part advice giver, your buyer's agent is your greatest chance of having a smooth transaction. Choose carefully. Work with someone you feel a connection with. Someone you feel comfortable with because they will be leading your team from here until you hold your new keys. 

2. Listing Agent: Unlike a buyer's agent, a listing agent works exclusively for the seller. While still a licensed Realtor, this one is not on your team. Their chief goal is to get their client the most money humanly possible for the house in question, putting them firmly on Team Seller.. You may meet them at the showing but, more likely, you won't see them in person until you sit down at the closing table. 

3. Inspector: Once you have an accepted offer, you will need to hire a home inspector. The cost to have an inspector go over your potential new home is worth it. Their job is to make sure you aren't buying a lemon. While no house is perfect -- even new construction -- you want to make sure you know the pros and cons before signing on a 30 year mortgage. Even if your inspector has bad news and encourages you not to buy a particular home, rest assured, they are on your team.

4. Appraiser: The appraiser's goal is to make sure that your offer price is a fair price for your home. They want to ensure that you do not overpay or, rather, that the bank doesn't loan too much money. While they are helpful, they are firmly on Team Bank.

5. Transaction Coordinator: Throughout the home buying process, you will probably have the most contact with the transaction coordinator. Most big listing agents have a member of their team that is dedicated to the closing. Often they take care of every last detail, from scheduling the appraisal and the closing to ensuring an open line of communication to all parties. They may work for the listing agent, but they are on Team Let's-Get-This-Done.