These days, it seems like you can use the internet to buy anything under the sun — but that does not include homes. Because real estate is such a significant investment, you will need to jump through at least a few hoops to ensure that you can, in fact, buy the home and to ensure that you do, in fact, want to buy the home.
There are five professionals you will meet during your home buying journey, and understanding their role in helping you buy a home is critical to getting on with the transaction and moving into your new space.
A Lender
It could take a lifetime to save up enough cash to buy a home outright, so instead of waiting for their checking account to accumulate hundreds of thousands of dollars, most first-time home buyers purchase their property with a home loan from a mortgage lender. There are many different types of mortgage lender, from direct lenders like banks and credit unions who work directly with borrowers like you to wholesale lenders who offer discounted rates through third parties. Most homebuyers acquire mortgages through lenders in their area; for example, if you live in Virginia, you should search for trustworthy mortgage lenders in Charlottesville, VA. Most lenders provide comparable services, but it is important to work with a lender you like and trust.
A Realtor
A realtor is a person licensed by your state to sell you a home. Because home sales are so complicated, buyers and sellers need to be guided through the process by someone knowledgeable about laws and regulations. The best realtors have learned state and local laws and have developed strong strategies for getting their buyers the home of their dreams. In most places, you are not responsible for paying your real estate agent; the seller pays your realtor fees when your home deal closes. You should interview a few different agents to find one who understands what you want from your home and suits your communication style, as you will be working closely with your agent over the coming weeks and months.
An Inspector
Once you put an offer on a home, you have a brief period of time during which you can back out of the sale without repercussions. You should take full advantage of this window to get your potential property inspected by a professional. A home inspection should be a thorough investigation of the most important structural elements of your home, from the foundation through the electrical and plumbing to the roof, in search of code violations or safety concerns. Your inspector will always find something, and it will be your decision whether that thing is worth renegotiating or canceling your offer.
Different states have different requirements for home inspectors; in Arizona, for example, home inspectors must be licensed, but in California, anyone can perform home inspections. Likely, your real estate agent will connect you with a reputable inspector.
An Appraiser
As the home buying process draws closer to close, your lender will send an appraiser to your potential property. The appraiser’s job is to estimate the value of the home, to make sure that the property is worth at least as much as you are paying, if not more. When your home appraises at or above the value you are purchasing it for, your lender can be confident that it is making a wise investment by offering you a loan. If your home appraises for lower than the purchase price, you will probably need to provide the difference between the appraisal value and the purchase price — or you might need to call off the sale entirely.
An Insurer
Your home is an incredibly important piece of property, and should harm befall it, both you and your lender will suffer financially. Thus, most lenders require you to show proof of home insurance before your deal can close. Homeowners insurance covers a variety of damage and losses sustained on your property, from a broken roof due to a falling tree limb to burglary and theft to serious injuries sustained by visitors to your home.
You can find homeowners insurance quotes online. While it might be tempting to acquire a policy with the lowest premiums, you need to be certain that your coverage is sufficient to replace or rebuild your home should a worst-case scenario occur.
If you have the budget and interest, you could meet with many other professionals during your home buying process — an interior designer, a contractor, a landscape architect. However, the above five professionals are truly essential to buying a home.
What did we learn?
