fbpx
Building Your Home Buying Team
There are a lot of professionals involved in the homebuying process. And when these people can function as a team, the buyer is much more likely to end up where they want to be…in their new home. The lender is an integral part of the team unless you are going to be paying cash. Trust […]
Building Your Home Buying Team
There are a lot of professionals involved in the homebuying process. And when these people can function as a team, the buyer is much more likely to end up where they want to be…in their new home. The lender is an integral part of the team unless you are going to be paying cash. Trust […]

5326091d-70b9-41b2-bb23-27cdcc37d6a0.jpg

There are a lot of professionals involved in the homebuying process. And when these people can function as a team, the buyer is much more likely to end up where they want to be…in their new home.

The lender is an integral part of the team unless you are going to be paying cash. Trust is very important when selecting this person because they are going to qualify you for the mortgage you need. The interest rate and fees should be fair based on your credit, income, and the market.

You’ll want someone who can close at the rate and terms that were quoted. In a rising market, you may want to consider locking in the rate so that it doesn’t go up before you close.

The appraiser is hired indirectly by the lender to determine the value of the home as part of the loan approval process. During the financial crisis of 2008, a process was created by the Dodd-Frank Wall Street Reform and the Consumer Protection Act to limit direct contact between borrowers, lenders, and appraisers.

This requirement protects appraisers from being influenced by a lender. Sometimes, an Appraisal Management Companies, AMC, may assign an appraiser who may not be familiar with a particular area or type of property. The real estate agent can act as a liaison to provide additional information about the property and area that the appraiser would not necessarily know about initially.

Once a contract has been fully agreed upon, one of the first steps is for the buyer to have a home inspection made by a professional. While most states require these professionals to be licensed, 14 states do not require one to perform inspections.

In addition to being licensed, some inspectors belong to professional organizations that provide specialized education and suggest levels of performance. Recommendations from friends who have recently purchased a home would be helpful. Your agent may give you several names of inspectors and you can ask for the buyer’s contact information who used them recently to verify their results.

Pest control is not usually included in the normal home inspection. These are also licensed specialists who are concerned about termites, other insects, and vermin. If you do not have experience with a pest control company, recommendations from friends and your agent can give you a place to start.

Property casualty insurance is required by the mortgage holder but even if you were paying cash for a home, it would be prudent to have insurance. A homeowners’ policy provides the broadest coverage with fire and other named perils including burglary for both the dwelling and the contents. Liability is packaged with the other coverage to protect you if someone is hurt while on your property.

Deciding based on policy price may not present a complete comparison. Another consideration is how the company handles claims in both time and settlement.

The title insurance provider is usually named in the sales contract. There are two different policies that are usually offered simultaneously but paid for separately. The owner’s title policy guarantees the buyer they are getting a clear and marketable title while the mortgagee’s title policy guarantees the lender that they have an enforceable lien.

The Real Estate Settlement Procedures Act gives the buyer the right to determine the provider.

Surveys are commonly required when new mortgages are established to make sure there are not encroachments on the property lines. Even in a cash purchase, a buyer may want to get a survey for the same reason. In some cases, lenders might accept a seller’s previously obtained survey.

The title company usually order’s the survey based on instructions from the contract or lender.

A real estate attorney is required in some states to be involved in all transactions. In other situations, a real estate attorney may be involved to draw the legal documents but in no way is representing the interests of a specific person.

A buyer or seller can consult an attorney and have them represent their interests in the transaction. Once a buyer understands if an attorney is not required in a real estate transaction, they are free to decide if they want legal representation.

The listing agent is hired by the seller when they place their home on the market for sale. In many cases, the listing agent has a fiduciary duty to put the seller’s interest above their own. These duties include loyalty, confidentiality, disclosure, obedience, reasonable care and diligence and accounting.

The buyer’s agent will interface with the listing agent in the various negotiations that will take place beginning with showing the property, offer, acceptance, and all the other steps that will lead to the settlement of the sale.

Agency describes a legal relationship and can apply to seller’s and buyer’s agents and is created once an agreement is signed; a few states have provisions for oral agreements. Members of the National Association of REALTORS� subscribe to a code of ethics that describes their practice and behavior to clients and the public.

There are many professionals involved in the purchase of a home. From a buyers’ standpoint, it is helpful to have one person who is familiar with the process to be coordinating the efforts of the different parties to finish with a settlement and possession.

There are a lot of steps and even if a buyer has been through the process before, they may not have the experience to anticipate difficulties and solve issues that could derail the transaction. The role of a third-party negotiator is a valuable role that the buyer’s agent plays. While the buyer is in control, the buyer’s agent can provide information and background necessary for sound decisions.

The purchase of a home is the largest investment most people make. Like it takes a village to raise a child, it helps to have a team to buy a home. Finding an agent to keep your best interests at heart is the first team member you need to select. From there, your agent can help you find the other team members.

For more information, download the Buyers Guide and make an appointment, in-person or virtually, to find out how they can put together your Homebuying Team. In that appointment, ask the agent to explain agency and its benefits to you in your upcoming transaction.

LIST OF BLOGS

Understanding Credit Life Insurance for Home Buyers

Credit life insurance is a specialized type of insurance designed to provide financial protection for borrowers and their families in the event of the borrower's untimely death. This insurance is often associated with loans, including mortgages, and is specifically...

Discover how to make a difference in your neighborhood

Whether you're a seasoned homeowner or just starting this thrilling chapter, every time you turn your key, you're not just entering a house but also embedding yourself in a neighborhood. The heartbeat of a vibrant community doesn't solely rest upon pristine lawns or...

How Home Value Growth Beats Renting

Over the last 60 years, the average sales price of homes has appreciated at a rate of 5.56% annually, according to the Federal Reserve Economic Data. During the same period, rent has increased at a rate of 3.88% annually which presents a compelling argument in favor...

Access “Trapped Equity” without Refinancing

American homeowners have a record amount of equity in their home. Many of these homeowners would like to cash out part of that equity but don't want to trade an historically low interest rate for one that is as high as it's been in 20 years. Instead of refinancing...

Navigating Closing Costs During Your Home Sale

Buying or selling a house is an exciting and sometimes confusing experience that includes expenses called "closing costs" that can often catch us by surprise. Closing costs are simply the fees and expenses incurred by buyers and sellers during a real estate...

Tap into your home equity five ways

Your home is not just a place to live; it's a valuable asset that can serve as a financial resource when you need it most. One of the significant advantages of homeownership is the opportunity to build equity over time, which can be accessed in various ways to fund...

New Construction Homes with Your Own Agent

Homebuyers in the market who are frustrated by the low inventory are finding what they want in new construction. Among the obvious advantages are that it is fresh and new, has never been lived in, and can be personalized to an individual's taste and needs. New...

How Rapid Rescoring Can Make a Difference

Imagine you're on the verge of securing a mortgage, and a slightly higher credit score could mean a lower interest rate. The good news? There's a quicker way to make that possibility a reality. Mortgage loans are often more time-sensitive than other loans. If you find...

Why It’s a Smart Move to Buy a Home in the Current Market

If you're in a financially stable position, now might be the perfect time to embark on your homeownership journey. Buying a home today offers several advantages, including the opportunity to build equity and stabilize your housing costs in the face of rising expenses....

RECENT POSTS

ABOUT  TWENTY
THREE HOMES

The Twenty Three Homes are one of the premiere real estate groups locally, nationally and internationally, specifically dealing with high-end properties and exclusive clientele. Partner with Keller Williams Twenty Three Homes are full service real estate experts whose clients benefit from the custom tailored, hands on service while receiving all the exclusive amenities and resources of one of the most established and respected firms in the business.

GET IN TOUCH