Who Will You Meet During Your Real Estate Transaction?

There’s much more that goes into a home purchase than many people recognize. Regardless of if you’re buying or selling your home, you’ll work with several different individuals throughout your sales transaction. This article will tell you a little more about some of the people who will be helping you throughout the process. Hopefully, you find peace of mind in knowing that you won’t have to navigate through the entire process alone.

You can’t have a sales transaction without both a buyer and a seller. However, it’s unlikely that you’ll interact with the other party much during the transaction. You’ll see them if you do an in-person closing, but until then, most of the interactions will happen between your realtor and the other party’s realtor.

A lender is one of the first people you’ll connect with when you start thinking about buying a home. You should speak with a lender as early as possible to get an idea of what you can afford to spend on a home. Your lender will ask you questions about your cash flow, your debt-to-income ratio, and your credit score. They may ask to see proof of income and recent tax returns. If you pre-qualify for a loan, your lender will tell you how much you could receive and at what interest rate. Keep in mind that different lenders can offer different interest rates, so it’s important to give yourself time to shop around and figure out which individual or company can give you the best deal.

The Title Company is a neutral party in a real estate transaction. In other words, they aren’t directly affiliated with the buyer or seller. Their responsibility is to handle the transfer of the home’s ownership legally from one party to the other. Once you go under contract to purchase a home, the title company will confirm that the seller holds the legal right to the property. They will search the title’s history to learn if there are any liens, or claims of ownership, on the title. They may also issue title insurance to protect your equity in the home if a future claim or issue arises. Many lenders require you to have title insurance in order to secure the loan to purchase the home. When you work with a local title company, you may work with a specific individual or multiple individuals from the same group or company.

The appraisal process is important for both the buyer and the seller. Once the home goes under contract, an appraiser will visit the home to confirm that the home is selling for a price close to market value. They will thoroughly evaluate the condition of the home and give their perception of what the home is worth. If the home doesn’t appraise for the amount at which it sells, the lender may not approve the loan because they would take on the risk of not recouping whatever value they have invested in the home if the mortgage forecloses. Many home contracts have an appraisal contingency that allows either party to terminate the deal in this case.

Shortly after a deal is made, an inspector will come to look at the home. They will look for any foundational, structural, or mechanical concerns that the home could have, and they will make both parties aware of any potential issues. This usually happens during the option period, when buyers can walk away from the deal for a small fee. If a buyer feels that the home needs too much work, or if they are concerned about the quality or construction of the home, they can walk away from the deal. Some sellers will order an inspection before they list their home so that they aren’t surprised by any issues that might come up. In a competitive market, the buyer will sometimes offer to waive the inspection as a way of making their offer more appealing to the seller.

Home insurance protects your home (and personal property) from natural disasters, accidents, theft, and fire. In many cases, you must have an active policy on your home in order to receive your loan. Home insurance doesn’t just protect the items inside your home, but it also covers bodily harm in some instances. When you purchase a home, you’ll work with a local home insurance agent to discuss your options and make sure you receive the coverage that you need.

Your realtor is the primary person who will represent you throughout your transaction. If you’re buying, they will help you look at potential homes and craft a compelling offer once you find a home that you like. If you’re selling, they will help you list and stage your home, and they often know the best practices for how to market a home effectively. Your realtor will help you negotiate when trading offers back and forth with the other party. They will answer any questions you have before closing, and they will make sure you know what you’re signing up for as you work your way through each document.

If you’re looking for a realtor to help you with your sales transaction, give Benjamin Zuk a call. Benjamin is well aware of everything that goes into a home transaction. Ben is dedicated and trustworthy, and he works tirelessly for each of his clients to ensure they receive the best possible service and representation. He would love to get to know you and help you buy or sell your home with as little stress as possible.