100 Questions New Homebuyers Should Ask
Beat the Mortgage Process
There are many people you will meet during your process of buying a home. Their interest is increasing their income at your expense. Your interest is getting the mortgage loan you want at the lowest possible cost. Right now, these people know more than you about the mortgage process. You need to correct that imbalance by doing your homework.
Who Gets Paid
These will include the real estate agents, the appraiser, the title company, the surveyor, the home inspector, the mortgage lender loan officer, and homeowner insurance agents. All of these people get paid by you except for the seller's real estate agent who gets paid by the seller from the proceeds of the sale.
Commissions and Fees
Several of these people are paid a flat fee and the others are paid commissions. Commissioned people include the real estate agents, loan officer, the title company, and insurance agents who only get paid when the loan closes. Those getting paid a flat fee get paid when they perform the work regardless of whether the loan closes. These include the appraiser and the home inspector.
Since you are going to be paying all these fees, not to mention the loan fees, it is in your best interest to know as much as you can about each service and required payment as you can. Remember, this is a business transaction and your objective is to keep as much of your money as you can. The objective of each of these vendors involved in the loan process is to get as much of your money as they can. They are not your friends, they are ruthless business people. Knowledge is your best defense.
New Home Buyer Book - 100 Questions You Should Ask