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- who can you work with?
As you go through the home-buying process, you'll likely need to work with a number of different people who have specific roles and responsibilities.
Loan officers
A loan officer is your day-to-day contact with an individual lender. Your loan officer can help you create a home-shopping budget and complete your mortgage application. In addition, your loan officer can help answer mortgage-related questions, such as whether or not you should consider paying discount points and which type of loan may best suit your individual needs.
Real estate agents
An experienced buyer's real estate agent can help you navigate the complexities of finding the right home and understand the nuances of your local real estate market. A local agent can help answer questions about the school district, the selling prices of other homes in the neighborhood and the advantages of a particular location.
- When working with an agent, make sure you understand who the agent is representing in the real estate transaction.
- A buyer's agent represents you as the buyer and sits on your side of the table during price negotiations.
- A seller's agent represents the seller and negotiates on their behalf.
Legal counsel
Depending on your location and personal circumstances, you may or may not need to hire a lawyer to help complete your purchase. However, a lawyer specializing in real estate can help ensure that your purchase agreement is legally binding and meets all local, state and federal requirements. Your lawyer will also help you craft language defining any special agreements between you and the seller of the house. Your real estate agent can help you determine whether or not a hiring a lawyer may be advisable.
Mortgage broker
A mortgage broker is someone who can help you shop around for rates among different lenders and find an attractive mortgage rate in exchange for a fee that is agreed upon in advance. Unlike a loan officer who works for a single lender, a mortgage broker works with several different lenders to help you find a mortgage provider. Whether or not it makes sense to hire a mortgage broker depends largely on your personal preferences. Hiring a mortgage broker can reduce the time it takes you to find a loan, but it also incurs additional up-front expenses.
Tax advisor
If you have questions about what home-buying and mortgage-related expenses may be tax-deductible, you may want to consult with a professional tax advisor. A tax advisor can help you consider how tax laws apply to your specific circumstances and may even be able to help you estimate the potential tax savings associated with a specific property and mortgage.
