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Day 15: Your Collateral
Day 16: Mortgage Insurance
Day 17: Compliance
Week 3: The Home Loan Process
Today’s Easy Financial Task: Learn about the people who help you buy a home.
How to rock this task:
- Come up with two to three professionals that offer the services you need
Welcome to Day 18 of the LRC: Homebuying Challenge!
Today is the second to last day of the week. How have you been enjoying this week so far? How is your accountability partner(s) doing? Make sure you check in with them regularly. Teamwork makes the dream work!
In this task, we’re going to talk about your home team. These are the important players in your home purchase.
You don’t do all of this alone. Instead, you assemble an awesome crew to help you navigate the homebuying process.
Your task today is to read through the different people who should be on your homebuying team and what they do.
Next, start researching professionals within the respective fields and choose two to three individuals that you can interview.
When buying a home, you need to think of yourself as the client.
All of the people on your home team are working for you...which is why you want to interview them first. Make sure they’re reliable and a good fit. Working with people you trust makes the homebuying process muchhhhh better!
Here are the people who will help you when buying a home:
Your agent assists you in searching for and buying a home. They’ll help you put in an offer and help you negotiate the deal.
A lender is the one who lends the money you need to purchase the home. The lender is typically a bank, credit union, or mortgage company. The person you work with closely is usually called the loan officer. They’re the ones who collect your paperwork, ask you questions and give you instructions throughout the process.
We talked about appraisals earlier this week. The lender chooses this person, but it’s worthwhile to mention it here. The appraiser is the person who decides what the property is worth.
The Title Company
The title company is the company that does a title search and issues title insurance. A title search is when a search is done to make sure that no one else has a claim on the property. For example, the government could have a claim on it for unpaid taxes. Title insurance is an insurance policy offered to the buyer and the lender after the title search is done. This insurance protects you in case someone comes out of the woodwork and says that the home belongs to them after you buy.
The home inspector is the person who inspects the home to see if there are any problems with it before you buy. The home inspection is a highly important part of the process and you need to hire someone good. This is the person who is going to make sure you’re not making a bad investment! I’m grateful for hiring a quality home inspector when I was going to buy an investment property. I found out the home had far more problems than it was worth before buying. Thankfully, I could back out of the deal! The American Society of Home Inspectors may be a good place to start your search on licensed inspectors.
Home Insurance Provider
Homeowners need home insurance. Generally, lenders want to see that you have home insurance before settling your home loan. It’s a good idea to start comparing home insurance rates. Getting insurance quotes from multiple providers will help you find one that can offer you the very best deal.
On to Your Task
For today’s task, come up with two to three individuals for your home team. Not sure where to look? Referrals are the BEST place to find awesome people to add to your home team. For this task, reach out to your accountability partners or other Dream Catchers in the group who live in your area to see if they have a referral for each of the providers above. Sharing is caring!
Any questions? Leave a comment below. Remember to reach out to your partner(s) to encourage each other through the Challenge. Check into the Dream Catchers: LIVE RICHER group as well.
Share what you’ve learned today with your tweeps:
You can reach out to me here:
Facebook: The Budgetnista
Private Forum: Dream Catchers : LIVE RICHER
Want to work through the Live Richer Challenge: Homebuying Edition in a workbook? It's part of a bestselling series!
Click the link below and get your copy.
P.S. If you haven't already... Get your Challenge Freebies from our Live Richer Challenge: Homebuying Edition coauthor, Netiva Heard. Click the pic below if you'd like to learn more about Netiva's services. You'll receive a discount! Just let her know you're a Dream Catcher
P.P.S. Here’s a copy of the Challenge Calendar. It’s a fun way to keep track of your progress.
P.P.P.S. Don’t forget to get your free Live Richer Challenge: Homebuying Edition Starter Kit. Download it HERE.