Real
Estate Agent / Broker:
When
you first start looking for a home, contact a real estate company
in your area. (The classified section of your local newspaper will
list real estate companies in the housing section). A real estate
professional can show you available houses in your price range
that meet your personal needs. Find out whether the broker is
representing you or the seller, or both. This is important to know
when you are negotiating a purchase price. If you decide to make
an offer on a home, the broker will present your offer to the
seller.
Lender:
Banks,
savings and loans, and mortgage companies lend money to home buyers.
Your lender will ask you to fill out a loan application form that
includes information about your income, employment and debts. The
lender will double-check this information.
Property
/ Mechanical Inspector:
For
a fee, a qualified inspector will examine the home you've chosen from
basement to attic. The inspection includes an evaluation of the home's
plumbing, electrical work, appliances, the furnace and/or air
conditioners, roof and structural stability. Some lenders require a
home inspection, and it's a good idea to get one. Getting an
inspection before buying your home could save you thousands of dollars
in future expenses. Knowledge of the house's flaws also may help you
negotiate a better price on the house.
Appraiser:
The
appraiser determines the market value of the house you've chosen,
based on its condition and the selling prices of comparable homes
recently sold in the area. This estimate helps the lender decide a
reasonable loan amount for the mortgage. You should not expect an
appraiser to uncover a home's defects -- that's the inspector's job.
Attorney
/ Closing Agent:
The
attorney or closing agent is responsible for ensuring that all
documents have been completed properly, including those related to the
title search and title insurance. The closing agent will explain all
closing documents to you and the seller, obtain your signatures and
record the documents with the appropriate local governments. He or she
also will collect the transaction fees and give them to the
appropriate parties.
Mortgage
Insurer:
Mortgage
insurance makes it possible for lenders to offer mortgage loan options
with only a small down payment. If for some reason you can no longer
make your payments, mortgage insurance helps cover the lender's
losses.
Loan
Servicer:
After
the loan closes, the loan servicer collects your payments and manages
late payments. Lenders often "release" servicing to another
organization, which means that you won't necessarily send your
mortgage payments to the company that made your loan. Your lender will
notify you of the correct address for sending your payments.
Mortgage
Investor:
You
are not likely to meet the Mortgage Investor, but it's good to know
what they do. About three out of four mortgage loans are sold to
mortgage investors. The Federal National Mortgage Association (Fannie
Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are
two major investors in loans for affordable housing.
Selling
loans gives the lender more money for future lending activities. If
your loan is sold to an investor, it will not affect any of the terms
of your mortgage. Your loan amount, interest rate and payment amount
will remain the same.
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