When buying a home, it's important to know all the players involved. Do you know the difference between a home inspector and a home appraiser? Between a mortgage lender and a mortgage broker? Between a real estate agent and an exclusive buyer agent? If not, we hope this helps...
1) Mortgage Broker / Mortgage Lender: A mortgage broker has no money to lend. Instead, a broker reviews your finances with you, and then shops around for the best lender / loan for your for your specific circumstances. A mortgage broker should be able to offer you a wide range of financing options. However, since mortgage brokers work on commission, they charge a fee (points).
When you go directly to a lender, you're removing the middleman, and going directly to the lending source. However, since lenders will not have as wide array of financing options as a mortgage broker, you must do your own research to select the right lender for your situation. When you go directly to a lender / bank, a loan officer will help you pick a product from the lender's offerings.
2) Home Appraiser: A home appraiser works on behalf of your lender. Once your offer is accepted by the seller, your lender sends out a home appraiser to ensure that the property is worth the amount of money you're borrowing. Since the appraiser has no vested interest in the sale, he/she can offer a neutral opinion of the property's value. Based on the results of the home appraisal, the lender will decide whether or not to approve your home loan.
3) Home Inspector: A home inspectors works on your behalf. Just as your lender sends out an appraiser, you'll want to send out a home inspector to ensure that the property is truly in the condition stated by the seller. A home inspector assesses all the major systems and parts of a home, and explains and documents anything outdated, damaged, or dangerous. Based on the results of the home inspection, you will decide whether or not to go forward with the purchase of the property. Before you hire a home inspector, make sure you read our questions for home inspectors.
4) Closing Agent (also called an escrow agent, escrow officer, closing officer, title agent): This neutral third party oversees the details of your property purchase agreement, such as performing a title search; arranging for title insurance; ensuring a successful money transfer; establishing an escrow account; and recording the deed that transfers the property to you.
5) Exclusive Buyer Agent (EBA): If you are buying a home, an EBA will guide you step-by-step through the process, and if you live out-of-state or out-of-country, an EBA also does an incredible amount of legwork for you. An Exclusive Buyer Agent can tell you which reports are necessary, which inspections to get, whom to contact, or whether something is a deal-breaker. With specialized training and experience, an EBA has 100% allegiance to buyers, negotiating on your behalf for the best property, price and terms for you and your situation. An EBA will answer your questions, put together a search plan, show you properties, guide you through the process, and find the property that's right for you. Since an EBA doesn't cost a cent in Florida (the seller usually pays the commission), it makes little sense to go without one.
If you're dreaming of real estate in Sarasota, Florida, then contact True Sarasota Real Estate (941) 918-1956. As Exclusive Buyer Agents for Sarasota Real Estate, we have helped buyers around the world discover and purchase beautiful homes for sale, luxury condos, waterfront properties, beach homes, vacation villas, and more in Sarasota, Siesta Key, Lido Key, Bird Key, Casey Key, Longboat Key, Palmer Ranch, Lakewood Ranch, Osprey, Nokomis, Venice Island, Bradenton Beach, and the surrounding areas on the Gulf Coast of Florida.
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