Who is Involved in a Typical Residential Real Estate Transaction?

A quick breakdown of who is involved and when.

Buying or refinancing a home is one of the most significant financial decisions most people will ever make. Understanding who is involved in a typical residential real estate transaction can help you navigate the process with confidence. Below is a breakdown of the key players, their roles, and when they typically enter the transaction.

1. Mortgage Loan Officer (First Point of Contact)

The first person you should reach out to when considering buying or refinancing real estate is a mortgage loan officer, like myself. I will help you evaluate your financial situation and find the best mortgage options tailored to your needs. Whether you’re a first-time buyer or refinancing an existing mortgage, I’ll compare loan products and guide you toward securing the best deal.

Involving me early in the process ensures that you have a clear understanding of your budget, pre-qualification, and approximate interest rates before you start looking for properties. I will also help you get pre-approved, giving you an advantage when you start bidding on homes.

2. Real Estate Agent

After you’ve secured pre-approval from me, the next person to involve is a real estate agent. Their role is to help you find properties that match your criteria and budget. For buyers, the real estate agent provides local market insights, arranges property viewings, and negotiates the offer on your behalf. For sellers, they help price and market the home and manage buyer interactions.

Real estate agents are experts at navigating the complexities of the market, and having one by your side ensures you have guidance when making offers or negotiating prices.

3. Real Estate Attorney

In New York, a real estate attorney is an essential part of the home-buying process. Their role is to protect your legal interests, ensuring that all documents are accurate and meet state regulations. The attorney will review the contract, explain the terms, and negotiate adjustments if necessary. After the contract is fully executed, your attorney will conduct a thorough title or lien search to confirm that the property is free of liens or legal claims and can legally and freely be transferred to you.

They coordinate the escrow process, where funds and documents are securely held until closing, and finalize paperwork to ensure everything is in order before you officially take ownership.

4. Home Inspector (Not necessarily applicable to apartment purchases)

Once your offer on a property is accepted, it’s crucial to hire a home inspector. The home inspector’s job is to evaluate the condition of the property, checking for potential issues with the structure, plumbing, electrical systems, and more. This step ensures you’re aware of any red flags before closing the deal. If major issues are found, you may want to renegotiate the price or request repairs.

5. Appraiser

Lenders require an appraisal to confirm the property’s value before approving a mortgage. A licensed appraiser is brought in to assess the home’s market value. The appraisal is critical in ensuring the lender, that you as the buyer are not overpaying for the property and more importantly that your loan amount in relation to the appraised value still fits within the banks lending guidelines. The lender will arrange this step once the buyer is ready to move forward and the loan application process has begun.

6. Loan Underwriter

The loan underwriter works for the lender and reviews the borrower’s loan application and financial information. Their job is to verify the borrower’s ability to repay the loan, ensuring that the borrower meets the lender’s risk criteria. The underwriter assesses income, credit score, employment, and debt levels before giving the green light for final approval.

7. Closing Agent

On closing day, a closing agent—often from the title company or attorney’s office—coordinates the signing of final documents, transfers funds, and officially records the transaction with the local government. They ensure the property ownership transfers smoothly from the seller to the buyer and that the mortgage funds are appropriately distributed.

Each of these professionals plays a critical role in making your home purchase or refinance a success. By starting with a knowledgeable mortgage loan officer, you ensure that your financial foundation is solid, making the rest of the process smoother.

Ready to get started?

Reach out to me today for personalized advice and for a pre-approval.

Best, Keith