When you purchase a home, there are a lot of moving parts involved; it’s a big transaction that requires the help of several experts, all working to ensure that the process goes smoothly. But there are many extra costs unrelated to your down payment. To help you understand what takes place during the purchase of a home, we’ve listed every professional you’ll be involved with:
The mortgage lender. Before you start shopping for a home, you’ll need pre-approval from the bank so that you know how big of a mortgage you can get. Your mortgage lender might be part of a credit union, housing program, or bank. When determining your approval status, they will factor in your credit score, outstanding loans, and income.
The seller. This is the person who listed the property as for sale; they’re who owns the home that you’re considering buying. You or your real estate agent will be in contact with the seller whenever you place an offer (or receive a counter offer).
A real estate attorney. Buying a home is one of the biggest purchases you’ll ever make, so you don’t want anything left up to chance. Involve a mortgage lawyer whenever you decide to buy a home. They will review the agreement of purchase, check the property tax, calculate the land transfer tax, and prepare closing documents. The contracts you’ll need to read are complicated and lengthy; a real estate attorney will have the expertise you need to make sense of them and spot any possible issues.
An insurance agent. Most lenders will not give you a mortgage before you purchase home insurance. This protection will save you from paying out of pocket in the event of a disaster, such as a fire, vandalism, or water damage. You can choose a coverage plan that suits your needs, so you only pay for what you require.
A home inspection expert. Just as you shouldn’t buy a car before taking it for a test drive, you shouldn’t buy a home before it’s examined by a home inspector. They will examine the house fully and see if there are any problems the seller did not disclose, like a faulty furnace or mold problem. In the event that the inspector finds a defect with the home, you may be able to negotiate a lower price with the seller.
Your family. When you buy a home, you have to consider those who will live there with you. Finding the right place for your family will require an in-depth discussion about what is right for everyone. Take these considerations up with your realtor or mortgage lawyer when you’re searching for the right place.
A home appraiser. This expert is familiar with market conditions in your area. They can compare the property you’re looking at to other homes nearby and see if it’s selling for a fair price. A home appraiser will take into account what gives the house more or less value than other homes.
The title company. This is one of the last steps in the home-buying process. A title agent will make sure the transaction is legal; they’ll review public records to confirm that the seller owns the home and can sell it to you.
You’ll be working with a group of people when you decide to buy a home. Each professional plays an important role in the buying and selling process. Considering the size of your investment, and the time you’ll spend living there, make sure to take every precaution when you’re buying a home.
Catherine Holland is an avid blogging enthusiast and experienced freelance writer with a focus in real estate, home improvement, interior design, and sustainable living.