Real Estate Agent is the licensed person
who acts on behalf of an owner to sell a property. Real Estate
Agents who are members of the National Association of Realtors
are called realtors.
Buyer Brokers are real estate agents who
enter into an agreement with the buyer to work exclusively with
the buyer to locate a home and negotiate the terms of home purchase.
Mortgagor is the borrower or owner of
the property in a mortgage transaction.
Lender or Mortgagee loans the borrower
money to purchase the home. Types of lenders include banks, mortgage
companies, and credit unions.
Mortgage Broker is an individual or company
that for a fee acts as an intermediary between borrowers and
lenders.
Loan Originator is responsible for the
initial interview and application of the prospective buyer. The
loan originator has responsibility for the loan from the initial
application until the loan is funded at closing.
Loan Processor verifies all information
on the loan application and is responsible for obtaining the
market value of the property by ordering an appraisal.
Loan Underwriter assesses the credit risk
of the borrower and makes the final decision to accept or reject
the loan based on the lender's underwriting criteria.
Federal, State, Local Agencies provide
financial assistance to qualified homebuyers under a variety
of programs. Examples of these agencies would include HUD, State
Housing Finance Agencies, and Community Development Corporations.
Property Inspector. A professional home
inspector thoroughly examines a home to ensure that the homebuyer
is fully informed about the house and its condition.
Property Appraiser is hired by the lender
to determine the market value of the property. Lenders require
appraisals to ensure that the property is adequate collateral
for the loan being requested.
Mortgage Insurer issues mortgage insurance
to cover losses that the lender could incur if the borrower did
not pay the mortgage. This type of insurance is required unless
the buyer makes a large downpayment on the home.
Property Insurer issues insurance policies
that protect the homebuyer from losses due to fire, flood, etc.
This is called hazard insurance. Lenders require that the home
be insured before loan closing.
Title Insurer issues insurance policies
that protect the buyer and the seller against disputes over title
or ownership of the property.
Closing Agent administers the loan closing,
disbursing funds to all appropriate parties.
Loan Servicer collects and processes monthly
mortgage payments. The loan servicer pays the mortgage's insurance,
real estate taxes, and hazard insurance to vendors if escrowed.
The loan servicer may or may not be the same institution as the
mortgagee.
