A who's who guide to buying your first home

From your real-estate agent to utility companies, many folks may be a part of your homebuying experience. Here's what they do — and why they do it.

If you want to buy a latte or a novel, you find the one you want, hand over some money and go on your way, interacting with one or two people along the way. But if you're buying a house, the process — and the number of people involved — is exponentially more complicated.

It can be overwhelming to keep all of the players and processes straight. Who does what? Do you really need all of these people? Why can't you just do it all yourself?

Without all those people, buying a house would take at least a year, You'd have to figure out all these things yourself, and it's a complex thing.

Each of the people involved in the homebuying process is an expert in that particular step. Just like a sports team, each player has a role and ability that helps the team come together to get the job done.

Here's a look at all the players and why — or if — they are essential to the process.

Real-estate agent
The real-estate agent is called the team captain. Your agent will be with you every step of the way and is the person with whom you'll spend the most time.

Most agents are found through word of mouth: A friend or neighbor had a good experience and passed along the name to you. You'll want to interview prospective agents to find out whether they specialize in the neighborhoods or property types you are looking for, whether they can answer your questions and whether you feel comfortable with them.

You should also check an agent's license by visiting the website of the Association of Real Estate License Law Officials. Many agents are also members of the National Association of Realtors and have the Realtor designation, which means they comply with NAR's ethics code and standards of practice.

An agent should be a local expert who understands the nuances of location. Agents can tell you if homes north of a certain street are better than homes south of it, for instance.

After helping you find the right home, your agent will manage the process of putting in an offer and negotiating the sale. The agent should explain the steps of the process from the beginning and keep in constant communication with you.

So, is an agent necessary? Considering that a buyers agent usually doesn't cost a cent, it doesn't make much sense to go without one. A buyers agent makes a commission that the seller pays, though this sometimes is worked into the final sale price. If you buy a home without an agent, you could save on the purchase price, but it's not a certainty.

Compared to what you give up in negotiating power, a good agent can earn back their commission and then some by finding ways to talk the price down, etc.

Aa buyer may not know which reports are necessary, which inspections to get, whom to contact, how to rank and address problems that come up, and whether something is a deal-breaker. An agent who spends every day entrenched in the homebuying process will be familiar with these things.

Mortgage broker or lender
The financing aspect of your home purchase may begin before you find an agent with a loan pre-approval. But the real work with a mortgage broker or lender starts once you've found a home and want to buy it.

A mortgage broker's job is to shop around to find you the best loan and lender to fit your needs.

Your local bank may offer home loans, but it may only have one or two options. A mortgage broker will be more aware of the dozens of other options out there.

This is all Lenders do for a living. Banks are also worried about their checking and savings. Lenders unlike a bank are dealing with mortgages all day long.

A mortgage broker can assess your financial needs and plans and find a loan to match. If you have a child heading to college in a few years, for instance, that may affect your desired monthly payment and the type of loan you want to get. You'll probably have daily contact with a mortgage broker for a couple of weeks while you're finding the right loan and filling out all the paperwork.

You can go straight to a lender for a loan, but you're going to need to do a lot of research on your own.

For the number-crunchers, that might be a way they're happy to spend their time, figuring out all the various comparisons to be made. But it seems like the average human being isn't excited to be doing that.

If you do go straight to a lender, you may interact with one person or several. A loan officer or mortgage banker will help you pick a product from the lender's offerings and help you apply but may have assistants during the approval process.

Appraiser
Before you can get a loan, the bank will have an appraiser look at the home and decide if it's really worth the money you're planning to spend.

An appraiser is an unbiased third party who can actually tell you the truth.

He has no vested interest in a sale or purchase and can give you a reasonable and reliable opinion of the value.

An appraiser isn't actually determining the exact value of the home but is mirroring the market using comparable sales and listings. An appraiser answers the question: What can people buy if they don't buy my home?

If someone is buying a home with cash, an appraisal isn't required, but it's not something you'd want to skip.

For the amount of money spent in the deal, the appraisal is probably the least costly but most important tool you can have in making that decision, it pays to be well-informed.

Property inspector
Before you buy a home, you should have it inspected to understand its condition.

A home inspector will evaluate all major systems and components of the home, documenting and explaining anything that is unsafe, inoperative or damaged.

The inspection can provide peace of mind, or the issues found can be reasons to not buy the house, ask for a reduction in price, (ask) for a monetary credit, (ask) that repairs be made prior to purchase, or to budget the repairs needed.

A home inspector is the first line of defense in terms of your knowledge base for the property you're going to buy.

In addition to the general home inspection, there are dozens of specialized inspections. A lender may require a pest inspection before you can get a loan. But you can also hire specialists to inspect the home's foundation, roof, electrical system, sewage system or chimney, for example. General home inspectors may recommend one of these detailed inspections based on something they find.

Some buyers will skip the inspection if a home is new, recently renovated or appears to be in good shape. But this can be dangerous because of all the hidden problems an inspection may uncover.

The inspection report is a great baseline for a homebuyer to have. It may tell you that the roof will need replacing in five years, for instance.

It's nice to get a written guide to what the systems in your house are that need watching and what to look back at.

Closing agent
A closing agent is a neutral third party who is in charge of all the details of your home-purchase agreement. This person also is called an escrow agent, escrow officer, closing officer or title agent. Depending on the state in which you are buying a home, this person will likely work for a title or escrow company.

This is a detail person who focuses on whether the money is where it should be and whether the deal is going to happen when it should.

A closing agent is part of the entire transaction but becomes a major player toward the end of the process. This person is "absolutely vital and important,".

Here are a few of the details a closing agent will handle:

• Perform a title search and arrange for title insurance.
• Coordinate with your lender and the seller's lender to make sure the money transfer is completed.
• Establish an escrow account for any deposit you make; this will be transferred to the seller when the deal closes.
• Record the deed that transfers the property to you.

By Leah L. Culler of MSN Real Estate

Modern Home Buyers also favor...

What Today's Modern Home Buyers Desire
Home buyers have high expectations for their purchases this year, the most critical of which may be a really great deal. In addition to more bang for the buck — and the bragging rights that go along with a superior bargain — today's house hunters also are looking for incentives, such as gift cards that they can use to decorate their new home or financial assistance at the settlement table.

Another important desire of buyers is that the property be well-maintained. "I'm not working with too many people who want a fixer-upper," says Pat Vredevoogd Combs, vice president of Coldwell Banker AJS Schmidt in Grand Rapids, Mich., and past president of the National Association of REALTORS®.

Current NAR President Ron Phipps agrees. More often than not, he explains, "buyers have limited amounts of cash. Even if they want to do a fixer-upper, they don't have the money to do it."

That is true even for buyers of bank-owned properties, says real estate broker Joan Pratt of RE/MAX Professionals in Castle Pines, Colo. "They want the short sales and the foreclosures, and they want them to look like they're owner-occupied," she says. "They don't want to paint. They don't want to put carpet in. They don't want to clean."

Modern buyers also favor open kitchens; open floor plans; and outdoor living components, such as screened porches, exterior kitchens, and two-way fireplaces. Additionally, the environment is increasingly important, with today's prospects seeking out elements such as triple-glazed windows and energy-efficient appliances.

Repurposed materials matter, too. "We're seeing lots of different materials and lots of reusable materials, which is interesting," Phipps notes. "Also a lot of unusual uses of hardwood — like pine flooring (reclaimed and) reused for counters," or terra cotta slabs for countertops. Buyers in 2011 are indicating a preference for smaller homes, but they like them nicely appointed. Luxurious elements such as coffee bars in the master bedroom are gaining popularity, as are expensive finishes in not-so-expensive homes.

Source: "Nine Items Homebuyers Desire in 2011," Bankrate.com, Dana Dratch (June 16, 2011)