Before purchasing a new home, you should familiarize yourself with the parties involved in the home buying process, each of their roles, and, crucially, what you’re actually paying them to do.

- __Buyer’s agent__: The real estate agent or broker who helps you find properties that fit your criteria and, eventually, negotiates a fair purchase price on your behalf. You can find this person before or after you start home shopping and decide how involved they’ll be in your search—you might delegate the work of finding listings entirely to them or share in the searching duties. Or you can simply tell them which properties you want to see, and, later, have them work on making offers and closing. In most cases, it’s smart to choose an agent early and lean on them heavily for support; their knowledge of on- and off-market listings, market factors and trends, property values, and neighborhoods, as well as their relationships with other real estate professionals, can be an enormous advantage.
- __Home inspector__: The person who examines the property you’re buying and writes a detailed report on its condition. The inspector looks closely for large and small issues, including the home’s structure, electrical systems, HVAC, plumbing, and roofing, which may not be visible during your walk-through. A home inspection is voluntary, but most mortgage lenders require that the buyer have one performed; your agent or lender should have trusted inspectors to recommend. Based on the inspection, you may request that the seller pays for repairs, ask for a price reduction to reflect repair costs, or even back out of the deal entirely. (If the seller wants you to waive your home inspection contingency, which allows you to walk away if serious issues are discovered, that’s a huge red flag.)
- __Seller__: The current homeowner. In most cases, as the buyer, you’ll never actually meet or interact with a seller directly. You each hire skilled professionals (i.e., an agent or a broker) to represent your interests and prevent negotiations from getting contentious.
- __Seller’s agent or listing agent__: The real estate agent or broker who represents the current homeowner. The seller’s agent relies on expertise and connections to help set a reasonable price to attract interest, stages the home for showings and photography, manages MLS listings, fields offers, and negotiates for a higher price, and works through any post-inspection requests for repairs. As a buyer, your agent might be able to access the property for a solo tour, meaning you won’t meet the seller’s agent. But they’ll more than likely be the person running any open houses you attend.
- __Appraiser__: The person who reviews the condition of the property, then determines [fair market value](https://www.masterclass.com/articles/fair-market-value-explained) by comparing it with similar homes in the area. Mortgage lenders usually require a [home appraisal](https://www.masterclass.com/articles/home-appraisal-process-explained) and choose a certified third-party appraiser, whom you as the buyer will pay, to ensure that your home is worth the mortgage amount you’re requesting. (If market data show that a home is worth significantly less than the requested amount, the lender may deny your loan, modify the terms, or ask you for a larger down payment.)
- __Mortgage lender__: The institution—such as a bank, independent mortgage lender, or credit union—that loans you money to buy a home. A loan officer employed by the lender will explain the various loan options and let you know what documents are needed. They’ll also work with an underwriter (see below) to confirm your ability to repay the loan, with interest, over a set period of time. Lenders often lack the resources to run the day-to-day operations for every loan they originate; typically, they’ll finalize your loan, then sell it to a mortgage servicer (see below), informing you of the debt sale well in advance. 
- __Underwriter__: The person who calculates the level of risk you pose to a lender. Before a lender will approve you for a [mortgage](https://www.masterclass.com/articles/learn-about-home-mortgages), the underwriter analyzes your financial documents to determine whether you can afford the home you want to buy. If they determine that extending a loan to you is too risky, the lender may deny your mortgage request, require a larger down payment, or ask you to add a cosigner. 
- __Mortgage servicer__: The company that manages day-to-day tasks for your loan. Whereas the mortgage lender initially loans you money, the servicer acquires your debt and oversees the account for the life of the loan. They ensure that taxes and insurance are paid from your [escrow](https://www.masterclass.com/articles/what-is-escrow-explained) account, send you statements, process monthly payments, track the principal and interest owed, answer your questions, and, if you fail to pay, can initiate a foreclosure.
- __Notary signing agent__: The impartial third party who acts as a witness to the signing of your closing documents. They will make sure you’re completely aware of what you’re signing, notarize (legalize) your documents by adding their signature and seal for state recordkeeping, then mail the completed documents for official filing.
- __Real estate attorney__: The lawyer who reviews contracts for you, explains legal paperwork, and may be involved in your title search and closing process. Some states (including Delaware, Massachusetts, New York, Georgia, North Carolina, and South Carolina) require that a real estate attorney be involved in home purchases. In certain cases, they may handle the title search, confirming the sale is legal before handing their results to the title company to issue title insurance. Even when it’s not required, you may want to hire a lawyer who specializes in real estate to review paperwork and explain it to you.
- __Title insurer or title company__: The title company performs a “title search” (reviews public records) for the property to confirm there aren’t any issues interfering with the sale. If there are overdue taxes, zoning restrictions, or liens against the property, you won’t receive a “clean title.” A [title](https://www.masterclass.com/articles/what-is-title-insurance) attorney will vet everything to make sure it’s legal, and if everything checks out, a title agent schedules your closing date and facilitates by providing documents, collecting closing costs, transferring keys, and ensuring that your new home’s title records are properly filed.
- __Tax adviser__: The person who assists with your tax concerns and ensures you’re aware of the tax ramifications of purchasing a home. Your adviser will explain the tax implications of drawing money from certain kinds of funds or using gifted money to make your down payment, as well as how your state taxes will change as a result of your home purchase. Your [real estate agent](https://www.masterclass.com/articles/what-is-a-realtor-explained) can answer some of these questions, but it’s best to consult a certified public accountant (CPA) for the most accurate information to avoid any surprises come tax season.
- __Homeowner’s insurance provider__: A homeowner’s insurance provider insures your home in the event of a disaster. In order to secure a home loan, mortgage lenders require you to obtain homeowner’s insurance to protect the property in the future. You are free to choose the provider and policy; it’s wise to begin shopping around and requesting detailed quotes as soon as you’ve submitted your mortgage application. Keep in mind factors like the property’s location, wage, condition, and the potential for severe weather conditions where you’re buying.

All you need is a [MasterClass Annual Membership](https://www.masterclass.com) and our exclusive video lessons from prolific entrepreneur Robert Reffkin, the founder and CEO of the real estate technology company Compass. With Robert’s help, you’ll learn all about the intricacies of buying a home, from securing a mortgage to hiring an agent to tips for putting your own place on the market. 
At different stages during the home buying process, you’ll work with a number of professionals with various specialties, all of whom play a role in getting your deal done. While you should always do independent research, your real estate agent is a major asset here; they can help recommend qualified professionals, so be sure to take advantage of their connections and experience. 


At different stages during the home buying process, you’ll work with a number of professionals with various specialties, all of whom play a role in getting your deal done. While you should always do independent research, your real estate agent is a major asset here; they can help recommend qualified professionals, so be sure to take advantage of their connections and experience. 


Everyone You’ll Meet During the Home Buying Process

Before purchasing a new home, you should familiarize yourself with the parties involved in the home buying process, each of their roles, and, crucially, what you’re actually paying them to do.<ul class="mc-m-4 list-styled"><li class="">Buyer’s agent: The real estate agent or broker who helps you find properties that fit your criteria and, eventually, negotiates a fair purchase price on your behalf. You can find this person before or after you start home shopping and decide how involved they’ll be in your search—you might delegate the work of finding listings entirely to them or share in the searching duties. Or you can simply tell them which properties you want to see, and, later, have them work on making offers and closing. In most cases, it’s smart to choose an agent early and lean on them heavily for support; their knowledge of on- and off-market listings, market factors and trends, property values, and neighborhoods, as well as their relationships with other real estate professionals, can be an enormous advantage. </li><li class="">Home inspector: The person who examines the property you’re buying and writes a detailed report on its condition. The inspector looks closely for large and small issues, including the home’s structure, electrical systems, HVAC, plumbing, and roofing, which may not be visible during your walk-through. A home inspection is voluntary, but most mortgage lenders require that the buyer have one performed; your agent or lender should have trusted inspectors to recommend. Based on the inspection, you may request that the seller pays for repairs, ask for a price reduction to reflect repair costs, or even back out of the deal entirely. (If the seller wants you to waive your home inspection contingency, which allows you to walk away if serious issues are discovered, that’s a huge red flag.) </li><li class="">Seller: The current homeowner. In most cases, as the buyer, you’ll never actually meet or interact with a seller directly. You each hire skilled professionals (i.e., an agent or a broker) to represent your interests and prevent negotiations from getting contentious. </li><li class="">Seller’s agent or listing agent: The real estate agent or broker who represents the current homeowner. The seller’s agent relies on expertise and connections to help set a reasonable price to attract interest, stages the home for showings and photography, manages MLS listings, fields offers, and negotiates for a higher price, and works through any post-inspection requests for repairs. As a buyer, your agent might be able to access the property for a solo tour, meaning you won’t meet the seller’s agent. But they’ll more than likely be the person running any open houses you attend. </li><li class="">Appraiser: The person who reviews the condition of the property, then determines <a href='https://www.masterclass.com/articles/fair-market-value-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/fair-market-value-explained","linkCopy":"fair market value","category":null}'>fair market value</a> by comparing it with similar homes in the area. Mortgage lenders usually require a <a href='https://www.masterclass.com/articles/home-appraisal-process-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/home-appraisal-process-explained","linkCopy":"home appraisal","category":null}'>home appraisal</a> and choose a certified third-party appraiser, whom you as the buyer will pay, to ensure that your home is worth the mortgage amount you’re requesting. (If market data show that a home is worth significantly less than the requested amount, the lender may deny your loan, modify the terms, or ask you for a larger down payment.) </li><li class="">Mortgage lender: The institution—such as a bank, independent mortgage lender, or credit union—that loans you money to buy a home. A loan officer employed by the lender will explain the various loan options and let you know what documents are needed. They’ll also work with an underwriter (see below) to confirm your ability to repay the loan, with interest, over a set period of time. Lenders often lack the resources to run the day-to-day operations for every loan they originate; typically, they’ll finalize your loan, then sell it to a mortgage servicer (see below), informing you of the debt sale well in advance. </li><li class="">Underwriter: The person who calculates the level of risk you pose to a lender. Before a lender will approve you for a <a href='https://www.masterclass.com/articles/learn-about-home-mortgages' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/learn-about-home-mortgages","linkCopy":"mortgage","category":null}'>mortgage</a>, the underwriter analyzes your financial documents to determine whether you can afford the home you want to buy. If they determine that extending a loan to you is too risky, the lender may deny your mortgage request, require a larger down payment, or ask you to add a cosigner. </li><li class="">Mortgage servicer: The company that manages day-to-day tasks for your loan. Whereas the mortgage lender initially loans you money, the servicer acquires your debt and oversees the account for the life of the loan. They ensure that taxes and insurance are paid from your <a href='https://www.masterclass.com/articles/what-is-escrow-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-escrow-explained","linkCopy":"escrow","category":null}'>escrow</a> account, send you statements, process monthly payments, track the principal and interest owed, answer your questions, and, if you fail to pay, can initiate a foreclosure. </li><li class="">Notary signing agent: The impartial third party who acts as a witness to the signing of your closing documents. They will make sure you’re completely aware of what you’re signing, notarize (legalize) your documents by adding their signature and seal for state recordkeeping, then mail the completed documents for official filing. </li><li class="">Real estate attorney: The lawyer who reviews contracts for you, explains legal paperwork, and may be involved in your title search and closing process. Some states (including Delaware, Massachusetts, New York, Georgia, North Carolina, and South Carolina) require that a real estate attorney be involved in home purchases. In certain cases, they may handle the title search, confirming the sale is legal before handing their results to the title company to issue title insurance. Even when it’s not required, you may want to hire a lawyer who specializes in real estate to review paperwork and explain it to you. </li><li class="">Title insurer or title company: The title company performs a “title search” (reviews public records) for the property to confirm there aren’t any issues interfering with the sale. If there are overdue taxes, zoning restrictions, or liens against the property, you won’t receive a “clean title.” A <a href='https://www.masterclass.com/articles/what-is-title-insurance' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-title-insurance","linkCopy":"title","category":null}'>title</a> attorney will vet everything to make sure it’s legal, and if everything checks out, a title agent schedules your closing date and facilitates by providing documents, collecting closing costs, transferring keys, and ensuring that your new home’s title records are properly filed. </li><li class="">Tax adviser: The person who assists with your tax concerns and ensures you’re aware of the tax ramifications of purchasing a home. Your adviser will explain the tax implications of drawing money from certain kinds of funds or using gifted money to make your down payment, as well as how your state taxes will change as a result of your home purchase. Your <a href='https://www.masterclass.com/articles/what-is-a-realtor-explained' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com/articles/what-is-a-realtor-explained","linkCopy":"real estate agent","category":null}'>real estate agent</a> can answer some of these questions, but it’s best to consult a certified public accountant (CPA) for the most accurate information to avoid any surprises come tax season. </li><li class="">Homeowner’s insurance provider: A homeowner’s insurance provider insures your home in the event of a disaster. In order to secure a home loan, mortgage lenders require you to obtain homeowner’s insurance to protect the property in the future. You are free to choose the provider and policy; it’s wise to begin shopping around and requesting detailed quotes as soon as you’ve submitted your mortgage application. Keep in mind factors like the property’s location, wage, condition, and the potential for severe weather conditions where you’re buying. </li></ul>

Everyone You’ll Meet on the Road to Home Ownership

All you need is a <a href='https://www.masterclass.com' target='_self' class='mc-text--link' data-mc-segment-trigger='true' data-mc-segment-event-type='Article Page Click' data-event-obj='{"textTag":"p","href":"https://www.masterclass.com","linkCopy":"MasterClass Annual Membership","category":null}'>MasterClass Annual Membership</a> and our exclusive video lessons from prolific entrepreneur Robert Reffkin, the founder and CEO of the real estate technology company Compass. With Robert’s help, you’ll learn all about the intricacies of buying a home, from securing a mortgage to hiring an agent to tips for putting your own place on the market.

Ready to Learn the Ins and Outs of the American Housing Market? 

At different stages during the home buying process, you’ll work with a number of professionals with various specialties, all of whom play a role in getting your deal done. While you should always do independent research, your real estate agent is a major asset here; they can help recommend qualified professionals, so be sure to take advantage of their connections and experience.