Players in the Home Buying Process
(continued from previous blog)
The Loan Officer – Consults with the Buyer about their needs and financial situation and suggest what loan amount and loan program is most suited to them. When the Buyer has made an offer, the loan officer then coordinates with the appraiser, the underwriter, the title company, the real estate agents and the escrow officer to get the purchase approved and funded on the closing date. A good loan officer has skills and knowledge about how to best “package” and present the deal to the underwriters to secure approval.
The Appraiser – Is sent out by the lender to look at the house and determine if it is worth the money that is being paid for it. A lender does not want to loan more than the house is worth, since this would put them at high risk to lose money in the even of foreclosure. The appraiser’s analysis is primarily based on recent sales of comparable properties. The appraiser also looks for conditions that would cause the house to lose value, such as a leaking roof or rotting foundation, and they may call for further inspections if these are suspected.
The Underwriter – Looks at both the borrower and the property to be bought and determines whether or not the lending institution will make the loan. They try to make loans that create as little risk as possible for the lending institution. A high loan to value ratio increases risk. They generally have guidelines that they must follow which state what kind of job history, credit history, and financial assets the borrower must have for a certain type of loan and loan amount. The loan will be refused or the interest rate increased if guidelines are not met. They also use the appraiser’s report to help them evaluate the property.
The Home Inspector – Is hired (usually by the Buyer) to do an inspection of the home before the purchase. In Whatcom County, the inspection typically last 3 to 4 hours, cost $250-$450, and generates a lengthy and detailed written report. A so-called pest inspection, which looks at the foundation and checks for wood-destroying organisms, is usually part of this inspection report, and a clear pest inspection is often required by the underwriter.
Your done!
Johnny Howes
The Loan Officer – Consults with the Buyer about their needs and financial situation and suggest what loan amount and loan program is most suited to them. When the Buyer has made an offer, the loan officer then coordinates with the appraiser, the underwriter, the title company, the real estate agents and the escrow officer to get the purchase approved and funded on the closing date. A good loan officer has skills and knowledge about how to best “package” and present the deal to the underwriters to secure approval.
The Appraiser – Is sent out by the lender to look at the house and determine if it is worth the money that is being paid for it. A lender does not want to loan more than the house is worth, since this would put them at high risk to lose money in the even of foreclosure. The appraiser’s analysis is primarily based on recent sales of comparable properties. The appraiser also looks for conditions that would cause the house to lose value, such as a leaking roof or rotting foundation, and they may call for further inspections if these are suspected.
The Underwriter – Looks at both the borrower and the property to be bought and determines whether or not the lending institution will make the loan. They try to make loans that create as little risk as possible for the lending institution. A high loan to value ratio increases risk. They generally have guidelines that they must follow which state what kind of job history, credit history, and financial assets the borrower must have for a certain type of loan and loan amount. The loan will be refused or the interest rate increased if guidelines are not met. They also use the appraiser’s report to help them evaluate the property.
The Home Inspector – Is hired (usually by the Buyer) to do an inspection of the home before the purchase. In Whatcom County, the inspection typically last 3 to 4 hours, cost $250-$450, and generates a lengthy and detailed written report. A so-called pest inspection, which looks at the foundation and checks for wood-destroying organisms, is usually part of this inspection report, and a clear pest inspection is often required by the underwriter.
Your done!
Johnny Howes
Labels: Financing, Inspection, Johnny Howes
posted by Johnny Ray Howes at
7:46 PM
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