Buying your first home can feel like joining a group project where you have not met the other members. Over a few weeks you may hear from an agent, a loan officer, a processor, an inspector, an appraiser, an insurance agent and a closing company, sometimes all in the same day. Knowing who does what makes the process less confusing and helps you send each question to the right person.
The people you choose
Your real estate agent helps you search, tour, understand comparable sales, write and negotiate offers, and keep the transaction on track. In many areas, buyers sign a written agreement with their agent that spells out the relationship, so read it carefully and ask questions before you sign.
Your lender is the company making your mortgage. You will mostly work with a loan officer, who takes your application, explains loan options and issues your pre-approval. Behind the scenes, a processor gathers documents and an underwriter makes the final decision on the loan.
Your home inspector examines the home’s condition and writes a report. You choose and pay the inspector, and the inspection is for your benefit.
Your insurance agent quotes and writes your homeowners policy. Lenders require proof of coverage before closing, so start this early.
The people chosen for you, or with you
The appraiser is engaged through your lender and gives an independent opinion of value. You usually pay for the appraisal, but rules keep the appraiser independent from you, the seller and the agents.
The title company or closing attorney researches the property’s ownership history, arranges title insurance, prepares closing documents, holds funds and makes sure money and paperwork go where they should. In some states, attorneys handle closings; in others, title or escrow companies do. Who selects this party varies with local custom and the contract, so ask your agent how it works where you are buying.
Specialists who may join
Depending on the home, you may also hear from:
- A pest inspector, sewer scope technician, radon tester or other specialist
- A surveyor, if the lender, the title company or you want the boundaries confirmed
- A structural engineer, roofer or HVAC technician, if the inspector recommends a closer look
- An HOA or condo association manager, who provides governing documents and fee information
- A real estate attorney, if you want legal advice about the contract or title
Who to call about what
A simple rule of thumb helps. Questions about the house, the contract dates or the seller go to your agent. Questions about your loan, your rate lock or required documents go to your loan officer. Questions about the closing time, location, funds or title issues go to the closing company. Legal questions go to an attorney, and tax questions go to a CPA.
Keep a contact list with each person’s name, role, phone number and email in one place. When everyone knows their part and you know whom to ask, the path from accepted offer to keys in hand becomes much easier to follow.
How the Team Works Together, Step by Step
It helps to see the team in motion. While every transaction is different, the hand-offs often follow a familiar sequence.
- Offer accepted. Your agent sends the signed contract to your loan officer and the closing company, and reminds you of the first deadlines, such as earnest money delivery and the inspection period.
- Earnest money and title. The closing company or escrow holder receives your deposit and begins the title search.
- Loan in process. Your loan officer orders the appraisal, and the processor begins gathering documents and asking you for anything missing.
- Inspection. You hire the inspector, review the report, and work with your agent on any repair or credit request. Specialists may be brought in if the inspector recommends a closer look.
- Insurance. Your insurance agent binds a policy and sends proof of coverage to the lender.
- Appraisal and underwriting. The appraisal comes back and the underwriter reviews the full file, sometimes issuing conditions you must satisfy.
- Clear to close. The lender approves the loan, the closing company prepares documents, and you receive the Closing Disclosure to review before closing.
- Final walk-through and closing. Your agent arranges the walk-through, you bring identification and verified funds, and the closing company handles signatures, recording and disbursement.
Being a Good Team Member Yourself
As the buyer, you are part of the team too, and your responsiveness affects everyone’s timeline. A few habits make a big difference:
- Answer quickly. A request from the processor that sits for three days can push back underwriting by just as long.
- Send complete documents. Every page of a bank statement, including the blank ones, saves a follow-up request.
- Keep everyone informed of changes. A new job, a large deposit, a new credit card or a change in plans should go to your loan officer before it happens.
- Use one email thread when possible. Copying your agent on lender correspondence helps everyone stay aligned on dates.
- Write down decisions. If you agree to something on a call, a short follow-up email confirming it keeps the record clear.
Common Points of Confusion
Loan officer versus processor versus underwriter
The loan officer is your main contact and advisor. The processor organizes your file. The underwriter makes the final decision. You will rarely speak directly with the underwriter, but their conditions reach you through the loan officer or processor.
Inspector versus appraiser
The inspector examines condition for your benefit. The appraiser estimates value for the lender’s benefit. An appraiser may note obvious issues, but an appraisal is not an inspection.
Title insurance types
A lender’s title policy protects the lender. An owner’s title policy protects you. Ask the closing company to explain both and what each covers.
Questions Buyers Ask
Can I choose my own closing company?
It depends on local custom, the contract and sometimes the lender. Ask your agent before you sign an offer, since the choice is often written into the contract.
Do I need a real estate attorney?
In some states, attorneys are required for closings. Elsewhere, buyers may hire one for legal advice about the contract or title issues. If you have legal questions, consult an attorney licensed in the state where you are buying.
What if two team members give me different answers?
Bring them together, or ask your agent to help sort it out. Different answers often come from different information, and a quick group email usually clears it up.
