Buying a home can be intimidating, especially if you’ve never done it. Since a home is such a big investment, there are naturally many steps you need to go through to finalize your purchase. Fortunately, you don’t have to navigate the process alone. Here are six people you’ll work with when buying your home.
1. Insurance Agent
Protecting your investment is one of the first things you’ll want to do when finalizing a home purchase. You’ll need to consult an insurance agent to help choose an insurance policy that adequately protects your new home. A good insurance agent will help you find a policy that meets minimum coverage requirements in your state. They’ll also help you determine whether you need to purchase additional coverage based on your unique risks.
Different insurance companies charge different rates for their policies. Therefore, it’s important to get more than one home insurance quote. Compare rates for at least three similar policies to ensure you get the best deal for your money. It would be best to research various insurance companies to ensure they consistently pay out claims and treat their clients well.
2. Seller
You may never need to communicate directly with the home seller if you have a realtor. However, if you’re not working with a realtor, you must talk to the seller and their realtor. You’ll want to learn more about the current state of the home and neighborhood. Ask for a seller’s disclosure, a legally binding document listing all property problems. You’ll also need to decide whether to offer the seller’s asking price or make a lower offer.
As you can imagine, communicating directly with the seller can be stressful. This is especially true if you’ve never negotiated the price of a home before. That’s why most homebuyers choose to go through a realtor. The realtor will handle most — if not all — direct communications with the seller.
3. Realtor
As mentioned above, a realtor is a great person to have on your side when buying a home. A licensed realtor has insider real estate industry knowledge. They can help you find the perfect home based on your budget, design preferences, and desired neighborhood specifications. They can also help you determine whether a seller is asking too much for a home you’re interested in.
A realtor can also help you get the property you want for the best price. A good realtor can help you avoid purchasing a money trap. This refers to a home that will cost you more in repairs and upgrades than it’s worth. A realtor’s commission can be hefty (typically around 5% to 6% of the home’s total sale price). However, the seller almost always pays the realtor’s commission during closing.
4. Loan Officer
You’ll most likely need a mortgage unless you’re buying a home with cash. Most home buyers get a mortgage loan through a bank. If you choose to do this, you’ll need to talk to a loan officer with the bank of your choice. They will help you determine whether you can truly afford the home you’re trying to buy. They’ll examine your debt vs. income ratio to ensure you’re a good loan candidate.
Licensed loan officers know a lot about the mortgage lending process. Therefore, they can become a valuable source of information. If you have any questions about the financial aspect of buying a new home, be sure to ask. Your loan officer can also help you understand the different mortgage options (such as fixed or adjustable-rate mortgages). They should be able to help you save quite a bit of money.
5. Home Inspector
Before signing any closing documents, you probably want a home inspector to check out the home and property you’re buying. This is important, even if the home you’re buying is a brand-new build. A home inspector is trained to analyze a home’s condition. They know how to find both obvious and hidden signs of problems. A good home inspector will check every aspect of the property, from the roof to the plumbing and sewage systems.
Without an inspection, you could buy a home with major (and expensive) problems. A home inspection report can give you negotiating power even if the house has relatively minor issues. You may be able to talk the seller’s price down based on certain imperfections or flaws laid out in the home inspection report. You can also take the house as it is or request that the seller fix certain things before you close.
6. Title Company Agent
Every piece of real estate has a house title, which shows ownership of the property and reveals whether there are any liens on it (which would prevent it from being sold). A title company plays an important role in the home-buying process. It works on behalf of both the buyer and the lender. A good title company agent will ensure the legitimacy of a real estate title and issue title insurance.
In addition to providing title insurance and researching the chain of title, your title agent will also manage the closing process on the home. They may refer to this process as a “settlement.” Once closing documents are signed, the title agent will finalize the title and deed transfer to you as the new homeowner.
A home purchase may be the largest investment you’ll ever make. Fortunately, you don’t have to invest on your own. These experts will help simplify the home-buying process so you can get into your new house as quickly as possible.
