Sign Our Guestbook | Contact Ann | Home You'll be working with several people on your journey to homeownership and surprise, surprise they all need to be compensated. Here's a quick rundown of the players you'll be working with in the home-buying process, including some you'll never meet face-to-face: The Real Estate Broker/Agent: The agent's reimbursement is riding on the fact that you will purchase a home. The fees your real estate agent receives are often included in the purchase price of the home. An agent who lists a home for sale usually shares the agreed upon commission with the agent who brings in a buyer for the house. The commissions are usually a percentage of the sale price of the home, but could be a flat fee. As a buyer, you pay for the services of the real estate agents in the purchase price of the home (unless you have a different agreement with your agent where you compensate them for the time, effort and knowledge they bring to the transaction). There are different types of agents, and these agents have different interests. A seller's agent is loyal to the seller. This means the agent, and the company that agent is affiliated with, is representing the seller's interests in the transaction. A buyer's broker/agent is bound to you and must keep your best interests in mind. This means that the agent/company is representing your interests in the transaction. In some situations you may be working with a dual-agent. This means that the agent or agents are representing both the buyer and seller in the real estate transaction. This situation can only occur if you and the seller agree to allow the real estate agents to act as dual-agents. When acting as a dual agent, Minnesota law limits the information an agent may share with you. This law states "the agents/broker shall take no action that is detrimental to either side...!" It is possible that you will work with a facilitator. This is an agent/broker who is not representing you or the seller in the transaction. They are simply carrying out the instructions of the parties in a legal manner. The Loan Officer: You'll be meeting with a loan officer early in the process. The loan officer will help you determine how much you can afford based upon the lender's criteria and the type of loan that is best-suited for you. Loan officers will also be checking your employment and credit history. Remember, unlike a real estate agent/broker who may be representing you, a loan officer is looking out for the interests of the lender. The loan officer is required to disclose upfront the fees they will charge and when the fees will be charged (prior to closing or at closing). Lender credibility is also important to receiving a mortgage. Using an established lender will help guarantee a successful transaction. Your real estate agent is very familiar with mortgage lenders and the services they can provide. If you haven't selected a lender before you hire an agent, ask them for a referral. The Loan Processor: Part of your closing costs will go to the loan processor. They double-check the work that the loan officer gathers. It is the loan processor's duty to determine if you're a good credit risk for the lender. They work closely with your loan officer, so you will probably meet them. The Underwriter: The underwriter reviews the loan file, assesses the risks and gives the final stamp of approval for your loan. Their work is done behind the scenes so you'll never meet them The Appraiser: The loan officer will need an independent opinion of the value of the home you are buying. The appraiser will visit the home you want to buy, compare it to similar nearby homes that have recently sold, and determine its fair market value. The appraiser might determine that the real value of the home is higher or lower than the price you've offered to pay. While you pay for the appraisal, it's conducted so that the lender can feel comfortable that the property is worth what you agreed to pay. Remember, if for some reason you default on the loan, the lender wants to make sure the property has enough value to cover your loan balance. When applying for a FHA or VA loan, you must use an appraiser certified by the FHA or VA (Veterans Administration), respectively. The Home Inspector: It is up to you whether or not to hire a home inspector. Having a home inspected will help determine if there are any major problems with the property. If major problems are detected, you can use them as part of your negotiation in the purchase. Your agent can recommend one or more reputable inspection companies. (See The Home Inspection) The Closer: The closer's duty is to ensure that all parties sign and date all documents. A good closer will have plenty of chocolates available to help reduce the stress. _________________________________________________________________________ Mavrik Realty is not engaged in the practice of law nor gives legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights and responsibilities as a homebuyer and homeowner. Click here for the entire 6-page printable PDF file for "Buying A Home"

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2105 Southview Blvd.
South St. Paul, MN 55075

Ann Leviton, Broker/Owner
CDPE, CRS, ABR, GRI
Cell Phone 612-270-5722
Office 651-457-3369
Fax 651-457-9533