Who Are the Professionals in a Real Estate Transaction? (Part 2 of 2)

Lockbox for realtors on a door at a for sale listed house

In our last Website Blog, we covered about half of the Real Estate professionals involved when you buy or sell your home. In Part Two, we will continue with the surprisingly long list! Read on as we define the remaining ones, and if you missed the last one, click here.

Buyer’s Lender

This is the actual source of the loan which means that they are the organization that is making the loan to the Buyer and sending the funds to the closing.

Seller’s Lender

The Seller may still have a loan on the home they are selling. This could be a mortgage loan, equity loan or line of credit. They will pay off this amount at closing.

Title Company

The title company has an important job and works on the behalf of the lender and the buyer. Their role is to conduct research on the title of the home you are buying to ensure that the person you are buying it from owns the home free and clear. This may be a jointly owned property or have other issues, so it’s critically important to ensure you will not have issues after you close. They also will research “chain of title” which is in effect the history of the home’s ownership and check for any outstanding liens that you may be unknowingly buying with the house. You would not want to be on the hook for any outstanding liens against the home.

The Title Company searches title and provides it to the Seller’s attorney to either clear, request more information, or provide insurance over certain defects.  The title company is the location where the closing usually takes place, and the company provides a “closer” to facilitate the closing between all the parties. The title company will provide the insurance underwriting company to insure title issues on behalf of the
Buyer.

The “Closer”

This is a person that is in effect representing the title company and who facilitates the closing. The Close’s role is important and brings all the parties and numbers together. The Closer will Gather all the numbers from all parties… the Seller’s attorney, Buyer’s attorney, lender, and title company. Then the closer will issue a document compiling the all the information and produce a HUD-1, RESPA or Settlement Statement.

The Closer will also collect all necessary funds at the closing and issue checks as per the final Settlement Statement.

Finally, the Closer also coordinates with the Buyer’s lender, and works to fulfill any requirements they
demand at closing, send for recording any pertinent documents including the Deed, Release of Mortgage, etc.

The Home Inspector

Hired by the buyer, the Home Inspector performs the task of fully inspecting the home. This provides critical information about the home’s condition- far beyond the surface. The Home Inspector spends hours going over everything including many expensive items that could significantly impact the purchase price, or potentially be deal breakers.

Interesting to note is that the Buyer can usually obtain as many inspections as they want if they are conducted within a certain time frame.

The Appraiser

The Appraisal is the “subjective value” of the home and it’s the appraiser’s job to help determine that number. Licensed by the state, the Appraiser looks at not only the home itself but location, upgrades and improvements, and recent sale prices of similar, nearby homes (commonly referred to as COMPS).

Usually, the Seller does not hire an Appraiser, as the agent is able to give the Seller a fair market analysis in place of an appraisal report. However, the Buyer’s Lender will often hire the Appraiser to determine whether the condition of the home supports the agreed upon purchased price.

A lender will usually not approve a real estate Buyer’s loan if the appraisal value is substantially less than the contract purchase price.

One of the benefits of working with the Chatel Group, is that they have compiled a long list of professionals to help you with all aspects of your real estate journey. Please see their Concierge Page for their list!

Sarah and Lisa hoped you’ve learned about all the professionals required to help you buy or sell your home. Information is power, and Sarah and Lisa want to empower their clients! Please contact them today if you have any other questions or need them to represent you in your real estate transaction.

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