The Real Estate Process and Roles
by David Ross
January 27, 2021
In a real estate transaction, there are A LOT of moving pieces! You have the borrower(s), real estate agent/realtor, a financial lender (bank/credit union) for most of America, the title company, and Notary Signing Agent. We are going to dive right in and explain the rights and responsibilities of each of these individuals.
Borrower
This is the person(s) who is/are looking to borrow money to purchase or refinance a property. The borrower has A LOT of control, more than the industry will let you know. This process can be very easy and smooth, or it can be your worst nightmare.
YOU CAN SHOP AROUND!! As a borrower, you have the ability to decide, in many ways, who you want to earn your business. You can pick your real estate agent (we can offer recommendations), you can choose a lender for a better rate/term based on your income and credit history (we can recommend our favorites), you are able to decide which title company to use, as well as which Notary Signing Agent to use (this is where we can help). Appalachian Notary Services comes to you at your convenience, instead of working on someone else’s clock, during ‘normal business hours’.
Of course, each realtor/lender/title company has their favorite or ‘go-to’ people, but this is about you. You drive this ship, you make the decisions. Some realtors may refuse to work with you, you may face issues with a lender, but you deserve to be the decision-maker.
This will be your best friend throughout the entire process. The real estate agent (or realtor) will stay in close contact with you regarding your search for your perfect property, whether it is a residential or commercial property. Ensure your agent knows EXACTLY what you want and whether you will compromise at all. This includes the size, shape, color, and price of the potential properties. If they don’t know what you want/need, they cannot effectively do their job.
Real Estate Agent / Realtor
If there is one (1) agent in the transaction, the normal market rate is a 6% commission. If there are two (2) agents [i.e. buyer and seller agents], the 6% commission will be divided in some manner. Your agent works hard for you. They deserve the fee they earn. Please respect your agent and bring up any issues as they arise.
Lender
This is where everything begins to get complicated if you don’t have everything in order, prior to starting the loan process. The lender will pull your credit report (some charge in advance, some don’t). The lender will be the party that, when you are approved for a loan, will draft the terms of the loan, such as the term, interest rate, annual percentage rate per year (APY), apply any discount points, discuss down payment options, etc. There are too many variables to list here.
I will tell borrowers not to use excessive credit, close an account, or apply for any additional credit at least six (6) months prior to or during the loan process or during it. Utilizing too much credit could show you are desperate for money you cannot afford to pay back.
Title Company
The title company is a very vital part of the mortgage lending process. They should not be discounted for their duties. Just like the name mentions, this party does the title work for a particular property. This includes doing a title search of public records for discrepancies with ownership or other legal issues with boundary lines, easements, or lawsuits.
The title company will act as a middle man for all of the different moving pieces. They work with the realtor, the lender, the appraiser (if needed) and bring all the parties ‘to the table’.
At times, the title company acts as the closing agent (Notary Signing Agent) for these transactions. They have in-house notaries, which means they work for the title company. They may also be an attorney, depending on your specific state.
Appalachian Notary Services can help facilitate the closings when the title company is closed or the borrower(s) cannot come to the title company for the signing. As a mobile notary service, we do not have restrictions on where we can go or even a time to conduct the signing. We work on your schedule.
Escrow officers are commonly found at the title company. These individuals are responsible for handling funds that are tied to a specific transaction and they must follow the directions of the buyers and sellers in the transaction. For example, the buyer would give funds to the escrow officer, while the seller hands the title to the property to the escrow officer. Once everything is received, the escrow officer is authorized to give the title to the buyer, while giving the seller the purchase funds.
Appalachian Notary Services
Here at Appalachian Notary Services, we put convenience and adaptability at the forefront of our business. That is why our motto is ‘We Go Where You Go’. Here at ANS, we understand that a lot of our clients cannot operate solely on banker’s hours, hence our availability.
We are not asking you to choose us over the recommendation of your realtor, lender, or title company. We are reminding you that we can facilitate your loan document signing when others cannot or will not.
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Until next time, stay safe and enjoy life!
Yes, there is. Simply put, they have no skin in the game. They don’t care one way or another if Client 1 and Client 2 are friends, enemies, or otherwise. They are simply at the venue to ensure that all parties involved are who they claim to be, everyone understands the general idea of what they are agreeing to (in writing), and no one feels pressured or intimidated to sign/initial the documents before them.
The short answer is no, you are not legally required to have most business documents notarized. No matter what most online forums, message boards or search engines may tell you.
Let’s face it…everyone needs something notarized at some point during their lives. Anything from field trip permission forms, college documents, purchase of a vehicle, business transactions, etc. (You get the point by now).