How Many Agencies are Involved When You Purchase a Home?

I am a first time buyer and am confused about many aspects of the buying process in California. Just how many different agencies are involved when you purchase a home in this state?

There are 5 different Companies you will be dealing with, each having a very important part in the transfer of property.

• Your Realtor-who is referred to as a buyer’s agent
• Appraiser- An appraiser is licensed under the state real estate commission who evaluates the house and property that is to be purchased for the Lender. The appraised value of the house is what the lender will go by for the mortgage loan.
• Home inspector- An inspector who may be a building contractor or a sub-contactor specialist. This inspector should be hired by you, the purchaser, to “inspect” the structure, plumbing, electrical and roofing to insure that the house being purchased is in good working and safe condition.
• Mortgage Lender- this is either a bank or a other lending institution who will carry the loan(Trust deed) on the property.
• Escrow officer-A third party who holds any money transfers in a trust account until closing and gathers all pertinent  documents concerning the property. Traditionally, the Escrow Company is where you will sign all the documents and close the deal.
• Title company- does a search of the property for any liens or other encumbrances. They insure that the property’s title is “Clear”