September 26, 2023
Buying a home with an FHA loan involves more than just three people; the buyer, the seller, and the participating lender’s loan officer. Third parties are typically involved in your transaction as you make your way to closing day and home ownership. Who are these third parties and why do you need to know them?
They can include title companies, home inspectors, pest control, and real estate agents. Knowing the service providers are in your area is key since you will need to compare services and prices before you commit.
Title Search For The House You Want To Buy
A title search is a crucial step in the home buying process. Don’t buy a home without a title search as you need that process to tell you if there are unresolved issues with the property that could come back to haunt you later as the new owner. A title company typically provides this service for a fee.
Real Estate Agents
Some new buyers want to know if they are required to use a real estate agent. No, you are not, but they can help you navigate unfamiliar territory when you look at houses in unfamiliar places.
Shopping around for an RE agent is important. Why?
Not all agents are the same, not all cost the same, and not all will have the relevant experience to help you get type of home you want.
Home Inspectors
The appraisal is a lender tool. The home inspection is the borrower’s tool. Hire a home inspector to complete a walk-through of the property in addtion to the lender’s appraisal. The inspection may be voluntary but you should never buy a home without one.
Pest Control
This may be optional for some borrowers. That is, unless the appraiser finds wood-destroying pests or other insect-related issues. In such cases, you may be required to hire a pest control company to get FHA loan approval. You will need to review the local vendors try to select one with experience in the specific pest issues you are dealing with.
Borrower’s Lawyer
It is not mandatory, but some buyers decide to hire a lawyer to review the sales contract for problems. A lawyer is not required for the purchase or sale of a home with an FHA mortgage, but as an option, some borrowers find hiring an experienced real estate lawyer provides extra peace of mind.
If you don’t, you could be liable for unpaid back taxes, homeowner association fees, or other problems held over from the previous owner. A title company is the service provider that does this work. Don’t overlook this important step or skip your research into the service providers near you.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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