The Parties Involved In The Home Buying Process

As you go through the process of getting preapproved, looking at houses, speaking to real estate agents, you’re getting closer to your making an offer to buy a house. During your discovery phase you want to familiarize yourself with the parties involved in the real estate transaction.

The parties involved in the home buying process are as follows in no particular order:

  • Buyer
  • Seller
  • Buyer’s agent (sometimes referred to as selling agent)
  • Listing agent
  • Mortgage loan officer ( mortgage loan originator, mortgage broker, mortgage lender all the same)
  • Title officer-makes sure transaction goes smoothly and gets information recorded in whatever County the property is located in
  • Escrow officer-make sure all parties are treated fairly and ethically during the transaction and acts as the neutral third party, the intermediary between all parties involved
  • Notary-may or may not have this person as sometimes title and escrow officers are also licensed notaries otherwise, a mobile notary would be involved for loan document signing.
  • Insurance agent-provides you hazard insurance in some cases depending on if you’re in a flood zone area a flood insurance policy rider.
  • Asset manager-if you are buying a foreclosure/distressed property. They work directly with the listing agent.
  • Real estate appraiser- most by the time hired by your mortgage company to make sure the value is equal to the agreed-upon purchase price, as well to make sure the property is lendable (free of health and safety hazards, depending on the scope of these hazards lender might require items to be fixed prior to closing escrow)
  • Funder-this is the person responsible at the mortgage company who works with the loan officer and actually sends the wire in to fund your loan. Your loan officer usually corresponds with this person.

When you are buying a house, as you can see, many other people are involved in the process.

As a home buyer, the people that you normally will communicate with will be your real estate agent, mortgage lender, maybe the appraiser depending on the transaction, your insurance agent and the title and escrow company. Depending on where you’re thinking about buying a house, sometimes title insurance companies and escrow companies are under the same roof as one entity.

For example in Northern California First American title Company, handles both the title side of the transaction as well as the escrow site of the transaction. If you’re buying a house, in Southern California the parties are split. There is a separate title company and a separate escrow company.

Work closely with the parties involved in the home buying process to ensure a pleasant close of escrow.