Who is involved when buying a house

Let’s look at it as who you are going to do business with when you decide to buy a house. Understanding who is involved in the process of buying your home can also help you understand some of the costs involved.

The Realtor

They help you find the house you want. They charge you a percentage of the price of the house. Just ask them how much they charge.

Many Realtors require you to get pre-qualified. This will let them know the maximum amount of money you can afford.

Consider your values when shopping for a house

What do you like to spend money on?

• Being House-broke is stressful
• Potential raises at work
• Grants available
• First-time homebuyer programs

Realtors are great at guiding you through the process of buying a home.

They want you to get the house because that means they get paid! They get their commission check at closing.

Closing is when you sign the documents that transfer ownership from the prior owner to you. Then you officially get the keys to your new house.

The Appraiser

This person goes into the home you are going to purchase and provides an estimated value of the house.

The appraiser takes into account the value on the inside of the house along with homes recently sold in the past 6 months in a close radius to the home you are purchasing. They will charge you approximately $400 – $600

The appraiser usually gets paid at closing.

The Lender

The lender qualifies you for a mortgage by filling out a mortgage application

They lend you the money for your home. Depending on the Lender, they will let you know what their charges are. You will see how much they charge in the disclosures you receive in the mail when you get pre-qualified.

• Types of mortgages
• FHA
• Conventional
• Rural loans
• VA loans
• Many more programs available!

First-time homebuyers -there are programs for first-time homebuyers!

When filling out the pre-qualification application you want to get as close as you can and estimate your:

• Income, and how much you have in savings, checking, retirement accounts.

You won’t need documentation until you find a house. These documents are typically:

• Driver’s License – (for identification)
• 2 Months of bank statements – check & savings
• Last 2 years tax returns
• Last 2 months of paystubs

Shopping around for a Lender

I highly recommend shopping around for your lender. Every lender has a different business model and different programs to get you in the door. Some have lower closing costs; some have lower interest rates. You will see the variations as you shop around.

• Big Banks
• Credit Unions
• Community Banks
• Mortgage Lenders
• Mortgage Broker

Housing Inspector

This is the person that goes through the house you want to buy and lets you know of improvements that may need to be addressed soon and in the future.

They can address potential problems with the house before you buy it.

Attorney or Title Company

The attorney ore title company are responsible to do a title search (making sure the seller can sell the property)

They check to see if there is a loan on the property (the current loan will need to be paid off at closing) and conduct the closing of the mortgage.

Insurance Agent

I highly recommend shopping around for your homeowners insurance. Ask friends & family who they would recommend.

Depending on your deductibles and what coverage you want, they will let you know how much homeowner’s insurance will cost you.

You have the option to pay the annual amount of your homeowners insurance at closing or before you close on your home.

Your credit score will also play a huge role in how much your insurance costs you on an annual basis.

My mission is to help you get the BEST interest rate and loan offers possible by getting excellent credit

Check out the financial tool the FDIC created. It has all the information I talked about above. fFill it in and print it out!