Who’s Who in the Mortgage Process (Part 1)

Want to buy a home, but have no idea Who’s Who in the Mortgage Process? Don’t fret. A lot of people are in the same boat as you!

Let’s start with the basics.

Houses are expensive and unless you have an abundance of cash, you’re going to need a bank and a Mortgage Loan Officer. Sometimes referred to as the acronym MLO, a mortgage loan officer represents the bank and their loan programs. You’ll talk with them and share enough information that they can help you determine the price point/budget of houses to look at, provide you with a pre-qualification or pre-approval letter and recommend the best type of mortgage loan that will fit your needs. They’ll be your trusted point of contact throughout the loan process for all of your financial needs.

Once you have your finances in order, it’s time to choose a Real Estate Agent. Sometimes referred to as a realtor, they will help you find houses in your budget, tour homes with you, work on your behalf to make and negotiate an offer, and prepare and obtain signatures on the purchase agreement. They will also be the conduit for communication between you and the sellers.

Oftentimes, you’ll make an offer on the house subject to: financing, appraisal, and home inspection. An Appraiser is a licensed professional who performs an estimate of a property’s value by assessing the home’s condition both inside and outside. They look at lot size, home size, evaluate amenities and building materials, and take note of home improvements or renovations. The bank will use the value from the appraisal report and compare it to the purchase price. A Home Inspector is a certified individual that will examine the home. The inspector will look for issues that assess the physical condition of the property such as the roof, foundation, heating and cooling systems, plumbing, electrical work, water and sewage, and other issues for the overall safety of the home.

You must obtain a home owner’s insurance policy on your house when you have a mortgage loan. A Homeowner’s Insurance Agent will help you figure out the coverage you need on your home in the event of a fire, natural disaster, wind and hail, etc. They will help you understand the clauses, requirements, deductibles, and the annual or monthly cost to you.

Make sure to follow along as we share part two of who's who in the mortgage process!

Blog written by Home State Bank Vice President, Personal Banker, and Mortgage Specialist, Amy Milligan. If you have any questions regarding a home mortgage, or the process, reach out to Amy and our team at Home State Bank.

Amy Milligan | 515-386-7219 | NMLS#: 1092551

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