People You'll Meet In The Home Buying Process
Buyer’s Agent – Represents
the Buyer as real estate expert, guides the Buyer, and negotiate the
lowest and best price for Buyer. The Buyer’s Agent has stringent
requirements to act as the Buyer’s loyal, dependable, competent,
Your Buyer's Agent is paid a percentage (usually
half) of the commission that the seller's agent gets paid by the seller
at the end of the transaction. It is very important to note that you,
the Buyer, do not pay your Buyer's agent's commission. The seller pays
the total commission to the seller's agent. The seller's agent then pays
the buyer's agent a percentage of that total commission that the two
agents have previously agreed upon.
Seller’s Agent –
Has same duties toward the Seller. The Seller’s Agent’s job is to
represent the Seller as real estate expert, guide the Seller, and obtain
the highest and best price for the Seller. Buyers should always keep
this in mind regarding the Seller and the Seller’s agent. Do not
volunteer information to the Seller's agent. Let your Buyer's agent
negotiate on your behalf. The Seller's Agent is
paid a commission by the Seller. This total sales commission is
negotiated between the Seller and the Seller's agent when the Seller's
Agent initially gets the listing from the Seller. The Seller's Agent
then splits that commission with the Buyer's Agent in a percentage that
both agents have agreed upon. The Buyer does not pay any of the
commissions of the two agents. All of the commission paid to both agents
comes from the seller out of the proceeds of the sale.
The Loan Officer
- Has a duty is assist the Buyer in obtaining the loan the best
suits the Buyer’s needs. An honest loan officer works in the
interests of the buyer by obtaining the best loan for the buyer,
while being paid a fair price for the mortgage services and
expertise being provided. The best loan for the Buyer is not
necessary the loan that will pay the highest commission to the Loan
Officer. This fact is forgotten by some loan officers.
The Loan Officer's fee are covered in
closing Costs that are paid when the loan is closed. The Loan
Officer can also receive money from the lender depending on loan
attributes that the borrower has selected through negotiation with
the Loan Officer, such as interest rate, length of prepayment
penalty, margin, length of fixed period, whether the loan is
interest-only, and many other factors.
The Escrow Company
- Is a neutral third party that handles all of the transfer
of money and documents. The Escrow Company does much of the
behind-the-scenes work that you won’t have to deal with.
Escrow fees are covered as part of
Closing Costs that are paid when the loan is closed.
The Title Company
- Ensures that you are taking clean title of your property
by investigating the title before you buy and by providing
title insurance to insure clean title for you.
Title fees are covered in Closing
Costs that are paid when the loan is closed.
- Will determine the Appraised Value of your new home prior
to the purchase. The Appraised Value may be different than
the actual market value. The Appraiser is supposed to
represent the bank’s interest, not the Buyer’s, the Buyer’s
Agent, or the Loan Officer’s. A good Loan Officer and
Buyer’s Agent will know well ahead of time if there is any
danger that the home will not appraise for the price listed
in the purchase contract. The bank will based the loan
amount on the Appraiser’s determined value, not on the
purchase contract’s sale price. If the Appraisal comes in
less than the Purchase Price, the bank might lend less money
than originally expected. The Buyer
normally pays for the Appraisal when it is performed.
- Works on behalf of the
Seller to ensure that the property is termite-free
prior to sale. The Seller
normally pays for the Termite Inspection and
subsequent required termite repair work.
Inspector - Works on behalf of
the Buyer. The Home Inspector is required to fully
inform the Buyer of the condition of the property
and particularly any defects that are material to
the value of the property.
The Buyer normally pays for the home inspection at
the time of the inspection.
be present during the signing of the
loan documents and will guide you
through this process. Normally it
takes about an hour to sign all of
the loan documents at the close of
escrow. The Notary works on behalf
of the Escrow Company.
normally gets paid as part of the
Closing Costs that are paid when the
loan is closed.
The Loan Officer’s Processor
- Assists the Loan Officer in
many aspects of the loan, such
as document collection from the
Buyer / Borrower.
Processor is normally paid
through Closing Costs that are
paid when the loan is closed..
Here Is An
to My Next Learning Annex Class On
First-Time Homebuyer Financial Assistance
Check Out The
Brought To You By
Mark Harmon, Realtor ®
CalHFA Preferred Loan Officer
USA Realty and Loans
Brokerage Main Office
3994 Carson St.
San Diego, CA 92117