What parties are Involved when getting a mortgage and buying a house?

If you're a first-time home buyer, you might not realize all the different professionals involved in buying and closing on a house. You may know you’ll need to find a real estate agent and a lender, but that’s just the beginning. 

Though there are two primary parties involved, you’ll likely work with several other professionals throughout the home buying journey. So if you’ve ever wondered how many parties a mortgage involves, this article breaks down the key players you’ll encounter.

The primary parties to a mortgage

Two primary parties are involved in every real estate transaction process: the mortgagor and the mortgagee. Understanding their roles can help you feel more confident as you move through each step of your homebuying journey.

The mortgagor

The mortgagor is the person borrowing the money to buy a home. As the mortgagor, you’ll work with a lender to secure the funds you need to purchase the property. You can speed up the approval process by having your financial documents in order, like recent pay stubs, bank statements, and tax returns.

Getting preapproved early can give you a significant advantage, especially in competitive markets. Preapproval shows sellers you’re serious and ready to make an offer, and it helps you shop with a clear budget in mind. As you search for the right home, remember to weigh your mortgage affordability alongside the features you’re looking for, like location and square footage.

The mortgagee

The mortgagee is the lender providing the mortgage loan, and they play a major role in your homebuying experience. The mortgagee reviews your financial documents, determines how much you qualify for, and issues your preapproval letter. Once you’ve found a home and made an offer, the mortgagee moves your loan through the underwriting process and ultimately funds the purchase.

Choosing the right lender can make a big difference, and you should look for a partner who’s trustworthy and communicates clearly. The right mortgage team can take away a lot of the stress that comes with buying a home.

When to find a lender

It’s best to connect with a lender before you start shopping for homes since getting preapproved helps you understand the type of home you can afford. This information helps you focus on homes that fit both your needs and your budget.

Preapproval also gives you more leverage as a buyer since you know how much you can borrow and can act quickly when you find the right house. Sellers are also more likely to take your offer seriously when they see that you’re preapproved. Even if you’re still in the early stages of exploring your options, talking to a lender can help you better understand what’s possible and prepare you for what’s ahead. 

Nine other parties involved in the home buying process

Every home purchase is unique, but most involve a core group of professionals who help keep the process moving smoothly. Some of these parties to a mortgage, like appraisers or title companies, may be required by your lender or state law. Others, like real estate agents or inspectors, are optional but are strongly recommended to protect your investment.

In addition to the mortgagee and mortgagor, there are nine other individuals you may encounter as you buy a home.

Buyer’s agent

A buyer’s agent is your main point of contact and advocate throughout the home buying process. They’ll coordinate showings, review market data, and help you understand what to expect during inspections and appraisals.

It’s a good idea to connect with a trusted real estate agent early in your home buying journey. Once you find your agent, you can also apply for mortgage preapproval. Having both can strengthen your position when you’re ready to make an offer on a house.

Working with a REALTOR®

While all REALTORS^® are licensed real estate agents, not all agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS^® (NAR) and is held to a higher standard of professionalism.

REALTORS^® follow a strict code of ethics that prioritizes honesty, transparency, and the client’s best interest. This means you’re working with someone who’s not only experienced but also accountable to an organization that values trust and integrity. 

Listing agent

A listing agent represents the seller in a real estate transaction, and while you may not interact with them directly as a buyer, they play an important role behind the scenes. The listing agent is responsible for marketing the home, setting the asking price, and negotiating on the seller’s behalf. 

Once you submit an offer through your buyer’s agent, the listing agent helps communicate the seller’s response. They may also be involved in negotiating repairs after the home inspection.

Even though their job is to protect the seller’s interests, listing agents also help keep the transaction moving forward. They do this by working with your agent to find common ground and reach a fair agreement for both sides.

Homeowners insurance company

Your home is likely one of your most valuable assets, so it’s important to choose a homeowners insurance company you trust to protect it. Take time to shop around locally and request quotes from multiple providers so you can compare different coverage options and costs.

Other types of insurance to consider

Standard homeowners insurance covers many risks, but depending on where you live, you may need additional protection. Homes in areas prone to flooding, hail, wildfires, or earthquakes often require separate policies or riders. Even theft protection can vary by policy, so it’s worth reviewing what’s included.

Every home is different, and your insurance needs can vary depending on your location, the age of the home, and its overall condition. Take time to research what types of coverage are recommended in your area and ask questions if anything is unclear. To make sure you’re getting the best protection at a fair price, compare detailed quotes from multiple companies. 

Title company

The title company plays a crucial role in protecting your investment as a homebuyer. While you may not interact with them much, their work ensures you’re buying a home with a clear and legal ownership history.

One of the title company’s main responsibilities is conducting a title search, which is a detailed review of public records to confirm that the seller has the legal right to transfer the property. This search helps uncover any outstanding liens, unpaid taxes, or unresolved mortgages that could create problems down the road.

To safeguard against future legal claims, the title company also issues two title insurance policies. One is for you and one is for your lender. This coverage protects both mortgage parties in case someone challenges the ownership or missed issues come to light after closing.

How to find a title company

Your lender may recommend a title company they’ve worked with and trust, but you have the right to choose your own. You can also ask your real estate agent for suggestions or read reviews to find a title company.

If you decide to select your own title company, consider working with a local provider who understands the area and its real estate market. A company with regional experience can help spot potential red flags and ensure a smoother closing process.

Appraiser

Before you can close on your home, your lender will require a home appraisal to confirm the property’s fair market value. Your lender will select a third-party appraisal company to keep the process impartial. The buyer typically covers the appraisal cost as part of the closing expenses.

Appraisers are licensed local professionals who research recent sales, assess the home’s condition, and evaluate features like square footage and upgrades. After visiting the property, the appraiser provides a detailed report with an estimated value. If the appraised value comes in lower than the offer price, it can affect loan approval or prompt renegotiation.

Home inspector

A home inspector evaluates the overall condition and safety of the home to give you a better idea of what you're buying. This information can help you avoid costly surprises down the road.

During the inspection, the inspector conducts a thorough walk-through of the property, often with the buyer present. They’ll point out both major concerns and minor maintenance issues so you understand what may need attention.

After the inspection, you'll receive a detailed written report outlining the inspector’s findings. You and your real estate agent can use this report to decide if you want to request repairs, negotiate a lower price, or move forward as-is.

How to find a home inspector

As the buyer, you’re responsible for hiring the home inspector. Your real estate agent or lender may be able to recommend professionals they’ve worked with before, but you’re not limited to those suggestions.

It’s a good idea to do your own independent research like checking online reviews and asking for a sample home inspection checklist to get a sense of how thorough their findings will be. A trustworthy inspector can make a big difference in your peace of mind as you move toward closing.

Real estate attorney

A real estate attorney may be involved during the closing process to help ensure the transaction is accurate and free of fraud. An attorney isn’t required for every home purchase but is mandated in the following states:

• Connecticut
• Delaware
• Georgia
• Massachusetts
• New York
• North Carolina
• South Carolina
• West Virginia

In other states, a real estate attorney may only be required at closing in select areas or for specific tasks:

• Alabama
• Arkansas
• Illinois
• Iowa
• Kansas
• Louisiana
• Maine
• Mississippi
• Nebraska
• New Hampshire
• New Jersey
• Ohio
• Oklahoma
• Rhode Island
• Tennessee
• Vermont
• Virginia

Because requirements vary, it’s best to check with your lender to understand what’s needed in your state or local area.

What does a real estate attorney do?

A real estate attorney protects your legal and financial interests throughout the homebuying process, but especially at closing. In some cases, the attorney may also conduct the title search instead of a title company. Once the title is confirmed, the attorney typically passes the results to a title company, which then issues the title insurance policies for both the buyer and lender.

The attorney represents you at closing, and they’ll review all legal documents, explain the fine print, and make sure you fully understand the terms of the sale before signing. Their job is to ensure your rights are protected and the transaction is legally sound. If you’re not sure where to start, your real estate agent can often connect you with a trusted local real estate attorney who’s familiar with state laws in your area.

Tax adviser

A tax adviser is a helpful but often overlooked resource during the home buying process. While they’re not required, their guidance can help you avoid costly mistakes, especially if your financial situation is more complex.

Here are a few reasons to consider consulting a tax adviser:

• You’re thinking about withdrawing funds from a 401(k) for a down payment and want to understand the tax implications or penalties.
• You’re purchasing an investment property and need help navigating deductions or rental income.
• You plan to use business funds toward a down payment. 
• You’re buying a home with gifted funds and need guidance on tax rules or reporting requirements. 

While real estate agents can answer some basic tax-related questions, it’s always a good idea to get professional advice where taxes are involved. If you already work with a CPA or tax adviser, start there. Otherwise, you can ask your agent for referrals.

Notary signing agent

A notary signing agent is an impartial witness when you sign the closing documents. Their job is to make sure you understand what you’re signing and to verify your identity at closing. It’s even possible to close on a house remotely, if needed.

• Notary signing agents are responsible for:
• Walking you through the closing documents.
• Confirming your identity and ensuring signatures are correct.
• Notarizing the documents with their signature, seal, and commission.
• Returning the completed paperwork for official recording.

In some cases, remote online notarization may be an option. This allows you to sign the documents virtually. Check with your real estate agent to see what options are available in your state.

Additional parties to consider when buying a home

Beyond the core roles we’ve already covered, you may need to bring in additional professionals for assistance. For example, if a home inspection reveals structural issues or necessary repairs, you may want to consult a licensed contractor or specialist. This individual can help you gain a better understanding of the potential costs and timeline.

Your real estate agent is a valuable partner in identifying which experts to bring in and when. They can often recommend trusted local professionals who are familiar with the area and experienced in handling similar issues.

The bottom line

Buying a home is a big undertaking, and it involves many different people working together at various stages. Each party plays a unique role in making sure the process is smooth, legal, and in your best interest. 

Your real estate agent is a valuable partner in this process, but don’t be afraid to seek out additional resources as well. If you’re ready to take the next step toward homeownership, start your mortgage application with Rocket Mortgage^® today.