Buying a home can be complex, confusing, and stressful.
It is one of the biggest purchases you will ever make in your life and navigating
the housing market is tricky. That's why it is important to assemble a team to
guide you through the process. Having a solid support team in place will take
some of the burden off you as a buyer, as you can rely on experts to make sure
everything is just right before and after you make your purchase. So, who are
the important players that make up your team? And who does what?
Each of the members of your house buying team
brings expertise and benefits to the home purchase process. Each person plays
an important role during the home buying process; this means less stress, less
work, less chance of something going wrong, and less money you may have to pay
in the long run. These members and their functions include:
Real Estate Agent: A Realtor is responsible for listing a property to sell and can also act as a buyer's agent to support you and help you find a home and a price that fits your needs, desires, and budget. In addition, a buyer's agent allows you to find a suitable property, negotiate a final offer, and hire other professionals you will need in the home purchasing process.
Lender: Your lender is a financial institution like a credit union that lends you the money to purchase your home. A good lender makes the mortgage process simple for the home buyer, supplying you with their expertise and advice so you can choose the loan that best suits you.
Loan Officer: The lender assigns this team member to help you understand the ins and outs of financing your home. You want to make sure your loan officer has experience and knowledge of the market. It is important to have an open dialogue with your lender so they can understand your worries, concerns, and questions, and make you feel at ease throughout the homebuying process.
Title Company: The title company validates the title of the home and provides insurance for said title. This process legitimizes the buyer's ownership of the property. The Realtor you work with typically has a Title Company of record and will be able to assist you with this.
Appraiser: The appraiser inspects the property and compares it to similar nearby properties to determine its value. Typically, real estate agents have appraisers they recommend but don't feel obligated to use their appraiser.
Home Inspector: A home inspector visits the home before accepting the initial bid and before finalizing the latest offer. A home inspector looks around the house, evaluating the condition and potential cost of repairs. The information from the home inspector allows the buyer to ask the seller to fix said repairs or, if not, lower the price. While a home inspector may seem the same as an appraiser, they usually go into more detail regarding specific repairs, issues, and the home's general condition. A home inspection usually costs a potential buyer $400-$600; but having an inspection can save you thousands of dollars in the long run.
Insurance Agent: Insurance agents help you understand what damage you are responsible for as a homeowner, informing you, so you know what insurance policies will be good for you to buy. For example, if you live in a flood-prone area, your insurance agent will undoubtedly suggest you purchase flood insurance, or if you have a government-backed mortgage, they will explain that you might be required to buy flood insurance.
Takeaway
There's no "I" in "Team" so don't take on the
stress of buying a home by yourself. If you don't know where to start, find a
good real estate agent who will walk you through the steps. And when it comes
to getting a pre-approval and a loan, Telhio
Credit Union is your local credit union with experience and expertise that
will help you get the home of your dreams.
