Finding your dream home is easier said than done. Whether you’re looking to get your own home or are balancing your own likes and dislikes with those of a spouse, getting all of the stars to line up can be a challenge. With that in mind, there is another consideration to take into account: your home buying team.
There are more players involved in the home buying and selling process than just you, which is why learning who each player is, along with what stage of the process they are involved with, can help a person get their dream home quicker.
How Long Does It Take to Purchase a Home?
First and foremost, before diving into the main players of a home purchase it’s important to look at just how long a person can expect it to take to actually secure a home. On average, it takes a prospective buyer around four and a half months to shop for a home, plus another month-to-month and a half for the closing process to complete. This means that you could be spending nearly half a year searching for your dream home. However, this process can go by far quicker by using effective players from the following list.
The Primary Players in the Home Buying Process
When considering purchasing a home, there are only two primary players that people tend to consider: the buyer of a home and the seller of a home. However, there are an additional three people involved in the home purchase process who are important to learn about:
- The Buyer
The first player involved in the home buying process is you! As the potentially buyer, you are scanning the residential real estate market in your area to find the perfect home to meet your needs. As mentioned, it can likely take months to actually find one that you love, so don’t rush this process simply because you are eager to make a purchase.
- The Seller
Naturally, the second player involved in the home buying process is the person who is actually listing their house for sale. It should go without saying that a seller may live in the house full time prior to listing it, or they may simply have rented it out for years and decided that now is the right time to sell the home.
- The Listing Agent
The listing agent is a specialized type of real estate agent who represents the seller of the home in the transactions. They have the same requirements for a CA real estate license as a buying agent, but they simply differ in who they technically work for. A listing agent could either be a simple real estate agent or a full on real estate broker, but the former is far more common in residential situations.
- The Mortgage Lender
Very few people are able to afford the cost of a home out-of-pocket with their own money, which is where a mortgage lender comes into the equation. Rather than being a person, a mortgage lender is almost always a bank that offers a mortgage loan to underwrite the purchase a home. This lender sets the terms of repayment, interest, and other important parts of a mortgage which must be followed. As a buyer, it’s important to consider multiple different mortgage lenders to find the best offer for your needs.
- The Escrow Agent
Finally, the escrow agent is another one of the most important players in the home buying process. This individual or organization is a neutral third-party in the transactions who holds onto the funds and assets related to the home purchase until both contractual obligations have been fulfilled. Once these obligations have been met, the seller of the home receives their money and the buyer of the home receives the home itself. While an escrow agent may not be required, they are extremely helpful when it comes to securing your funds in the event that something with the purchase doesn’t go as foreseen.
Find your dream home today
By learning the role each of the above players have in the home purchasing process, a person can plan out their home purchase more effectively. Each of the five above people, including yourself, are equally as important during this process, but each person plays a unique role. Utilize all of the above information during your home purchase process to simplify your understanding of the situation.