YOUR HOMEBUYING TEAM
Below are the members of a typical homeownership team. All of these housing professionals are here to protect and help you get into your new home. I can't stress enough the importance of having the right players on your team. We are all here to help you help you achieve homeownership and it's important to make sure everyone is working hard for you - it's really all about YOU! Some members you may not be able to pick but it's important to know their roles and how it pertains to your homebuying experience.
- Homeownership counselor - you may need to have a counselor that works for HUD approved non-profit organization to help you with financial fitness or other areas as needed.
- Title insurance officer/Escrow Officer - these are neutral third party who facilitate between the buyer and seller on the purchase transaction. The will provide history on the property showing everything that is listed or attached to the real estate you are buying. They will also check to make sure there aren't any liens or judgements against the seller or buyer. Most times the Escrow Company is already decided.
- Real estate agent - most people will use a licensed real estate agent to help them buy a home. There are two types of real estate agents, one that works for the seller (listing agent) and the other one works for the buyer (buyer's agent). The seller pays for the cost of using agents via the listing agreement and an agreed upon listing fee. Please always protect yourself and use a licensed real estate agent when buying real estate.
- Home Inspector - this is probably the most important person in the transaction as they are going to check the home inside/out and upside down. They will be looking at everything structurally that is wrong with the home. They check the foundation, roof, doors, windows, ceilings, walls, floors and mechanical items such as plumbing, electrical systems, heating, air conditioning, insulation, ventilation. . .septic tanks, wells and sewer lines may require additional inspections. The home inspector will warn you of any "big" ticket items before you "officially" buy the home. Make sure the home inspector is ASHI certified.
- Lender - almost everyone needs financing when purchasing a home (whether it's your first or your 10th home). Your lender will go over all the ins and outs of the different types of loan programs and go over the cost of financing and buying a home. Your lender will also go over your financial situation to see if you are in a position to obtain a loan.
- Appraiser - when you apply for a loan (and have an accepted offer from a seller), the lender will order an appraisal thru a neutral third party vendor (Appraisal Management Company). The cost of the appraisal is paid upfront to the Appraisal Management Company. The value of your home will be determined by the interpretation of the appraiser as they look at homes that have sold in the area of your home and they compare those sold homes to your home. Your lender will go over the report with you once the appraisal is in.
- Surveyor - a surveyor is a licensed professional who checks the measurements of a property and the land around it. Everyproperty has a legal description that defines the property lines. In newer subdivisions, the property lines are easy to find because the lots are very regular and are clearly marked on the plat maps. However, in older neighborhoods or in rural areas, property lines may be blurry and it takes a professional to find them. In these cases you would hire a surveyor.
- Insurance Agent - Many people have car, health and life insurance (and even renters insurance). When you become a homeowner, you will also need homeowner's insurance (also known as hazard insurance or fire and casualty) - this is part of your monthly payment with your lender. In the event the house is destroyed by fire, storm or other covered event, the insurance company will send a check to the lender to pay off the loan. Check with your insurance agent that handles your car or other insurance to give you a homeowner's insurance quote once you have an accepted offer with a seller.