Know the principle players for buying a house

As consumers embark on the home buying process, it is important to understand the role of each professional that is a part of the experience. The nonprofit Illinois Association of Mortgage Professionals offers consumers information about the main professionals they will likely work with during the largest financial transaction of their lives:

Loan originator: Whether consumers work with a mortgage broker or with their local bank, the loan originator's responsibility is to discuss loan program options, which should be based on the consumer's individual financial circumstances.

The loan originator will take the initial application, secure a credit report and, if it's a mortgage broker, he/she will "shop" the consumer's loan to a variety of lenders in order to find the most appropriate loan program (individual banks offer the programs that they have available).

Upon receiving approval for the loan, the loan originator will provide to the consumer a pre-approval letter from the lending institution. From there, the loan originator and the processor in their office will work with the consumer to complete all paperwork to insure receipt of the funds at closing.

Processor: A mortgage processor takes responsibility for the first stage of the mortgage application process by accepting an application from the prospective borrower.

Once it has been decided which loan program will best fit the borrowers individual circumstances, the processor will submit the loan details to the relevant lender and make sure there are no delays in the paperwork the borrower will sign at the closing table.

Appraiser: Prior to releasing funds for a mortgage, the lender will hire a licensed appraiser to assess the value of the property. The actual loan amount provided will be based on the appraised value of the home.

Home inspector: Once a consumer decides on a home that he/she would like to purchase, many will retain the services of a professional home inspector, whose job is to look at the home from top to bottom and provide a written report of any defects that might require repair. At that point, it is up to the seller and buyer to determine how the issues will be addressed.

Attorney: Many consumers choose to hire an attorney to represent them at closing. The role of the attorney is to review all documents related to the loan and, if any changes are warranted, to consult with the other parties involved.

Real estate agent: The role of the real estate agent is to work with home buyers and home sellers throughout the process and guide them on appropriate sale price, negotiations and local area information.

Title company: The title company is responsible for insuring that no liens exist on a property and also properly recording title upon a change of ownership.

For details, visit the Illinois Association of Mortgage Professionals Web site at www.iamp.biz.