It takes a lot of people to complete a successful real estate transaction and it can be confusing to keep track of all these people and their responsibilities. If you’re new to real estate, keep this list below handy. It will help you “Get on the Inside Track” by keeping you prepared for the transaction and allowing you to better follow along with the players as your transaction is passed between them.

Appraisers prepare reports on the value of real property for the benefit of lenders and buyers and are state-licensed to do so.

Escrow officers make sure all of the documents and funds associated with real estate transactions are properly organized, handled and processed.

Home inspectors prepare reports about the condition of the accessible areas and major components of real property for the benefit of buyers (Real property is defined as land and all the things that are attached to it – including your house). Home inspectors must be licensed in some states.

Lenders evaluate and approve loan applications and then lend money to those qualified borrowers so they can buy and own real estate. Community banks, commercial banks, mortgage banking companies and credit unions are among the types of lenders that offer real estate loans.

Mortgage brokers help borrowers select the right loan, submit borrowers’ loan applications to lenders and complete much of the paperwork necessary for borrowers to obtain financing for their home. Mortgage brokers typically are paid by lenders.

Other inspectors may prepare additional reports about the structural soundness of the home, the presence of wood-destroying pests (i.e., termites), and environmental hazards and so on. These are the guys that will crawl under your house, visit the attic, and check every power outlet and light socket in the house to make sure everything is working the way it should be.

Real estate brokers represent home buyers and sellers in the real estate transaction. Buyers and sellers typically are represented by two different brokers; however, in some cases, one broker may represent both the buyer and the seller in what’s called a “dual agency.” Brokers are sometimes referred to as “listing” or “cooperating” brokers. Listing brokers are real estate brokers who are hired to sell, or list, the home. Cooperating brokers are the real estate brokers who represent the home buyer in a real estate transaction.

Real estate salespeople act as agents of real estate brokers. Salespeople (also known as agents) help buyers locate homes they want to purchase, help sellers locate buyers for homes they want to sell, and help buyers and sellers negotiate the terms of their deals. Salespeople also complete many of the other tasks that are necessary to close the transaction. (Similar to brokers, agents are referred to as “listing” or “buying” agents. The listing agent is the agent who represents the seller and the buying agent is the agent that represents the buyer.)

REALTORS are real estate brokers and agents who are members of the National Association of Realtors, a trade organization. Often times, a lay-person will refer to agents and brokers as REALTORS when they may not be. Most, but not all, brokers and salespeople are REALTORS. Regardless of this, the agent and or broker you work with will be licensed and authorized to work with you on your purchase.

Title companies research the chain of ownership of the property and any known liens or encumbrances and then issue title insurance, which protects lenders and owners from undiscovered claims of ownership of the property. If there are any issues with past ownership of the property, these are the people that will catch it. Without this necessary resource, an incorrectly documented sale from the past could result in a past owner reclaiming ownership rights to your property years after you purchased it.

Title officers work for the title companies and do the necessary research to ensure that when you take ownership, the property is yours free and clear.

This has been Real Estate Rob putting you on the Inside Track to home ownership.

Imagine being free of debt — no more sleepless nights over mounting credit card balances, no more debt-created anxieties, and no more threatening letters or phone calls from dreaded collection agencies. You can be there just like others have. By following these 8 steps below, you will soon be out of debt and on your way to a healthy financial future. It’s important, not only to your ability to purchase a home, but also to create long term financial stability for you and your family.

Step 1: List your Debts

Many shy away from this important step because they simply don’t want to face reality. But unless you do it you won’t have a clear picture of what you owe. Get out all of your statements and list them on a sheet of paper or in a spreadsheet with the highest balances first. Also include the minimum payment and the interest rate you are paying for each debt.

Step 2: Prioritize Your Debts

Reducing the number of debts you have is not only smart money management but also begins to help you simplify your finances by allowing you to write fewer checks each month. It will also give you gratification that you paid off a debt entirely. To do this you will want to pay off the smallest ones with the highest rates first. For example if you have a credit card balance of $500 with a 20% interest rate and one with a $3,000 balance with a 15% interest and want to pay $600 this month toward the debts, put $500 towards the $500 balance and get rid of it as opposed to putting $300 towards each for example. Then apply the $100 remaining amount to the $3,000 balance. You have just now eliminated one entire balance. Then next month, you can put the entire $600 toward the remaining credit card to pay that one off even quicker.

Step 3: Avoid Rolling Your Balances From Card to Card

Some may think that this is an easy way of lowering your interest rate but don’t be fooled into thinking that you are making progress when you may not be. The reason is that every time you apply for another (lower interest rate) card your credit is pulled which could lower your credit score. In addition, if you are applying for a loan on for a home, the lender may think that you are just rolling the balances from card to card. In addition, often times there is balance transfer fee that will be charged simply for the convenience of rolling the balance. Now you have taken a few steps back by putting yourself into even more debt. If you want to lower your interest rate, you should call your credit card company where you owe the debt. Often times they will lower your interest rate so they keep you on board instead of risking you transferring the debt to another bank.

Step 4: Close Paid off Accounts

One of the best ways to avoid future debt build up, improve your credit, and give you more control of your finances, is to close credit cards as you pay them off. Ultimately, you only need one credit card (with benefits such as airline miles or merchandise gift cards of course). Multiple cards are harder to keep track of and are simply too convenient for you to use for credit. Once you have paid one off you should IMMEDIATELY contact the issuer of the card and request that it be cancelled. This will also look better on your credit report and to lenders as it helps you look financially responsible and in control. If lenders see multiple credit cards that are open, they will know that you could access that money at any time which may make them uncomfortable.

Step 5: Review Your Credit Report

Not only are we living in a time of identity theft but many creditors will make mistakes which can be reflected on your credit report. That’s why it’s important to know what your credit condition is at all times. You should start by ordering a copy of your credit report from any of the major credit bureaus to check for any mistakes. You may want to go a step further by enrolling in a credit monitoring service ($7 - $14 per month) which gives you email alerts anytime there is a change to your credit and helps you when mistakes are made by creditors. Once you start paying down your debts and clean up any mistakes on your credit report, you will see an immediate increase to your credit score or FICO.

Step 6: Create a Budget

Painful words but don’t shy away from this necessity. Many people cringe at the thought but those that are financially healthy have more than likely incorporated some type of budget into their lives to control spending. You’ve heard the old adage, “It’s not about how much you make it’s about how much you save.” It’s true because a dollar saved is a dollar earned. Not all of us have the earning capability of others but we do have the capability to spend within our means. Unnecessary debt can be avoided by following one simple rule: If you don’t have the money to pay for it, then don’t buy it. A budget is especially important as you begin the process of paying down your debts. All it takes is a simple budget and sticking to it. You will see your debts decrease and your net worth and credit increase.

Step 7: Use Equity in Home ONLY for Smart Investments

If you have a home and are looking for investment property, looking to upgrade your current home, or looking to pay off high interest debt such as credit cards, using your equity can be a smart thing to do. However, using the equity to take a vacation or buy a car are not smart investments. These types of expenses will quickly deplete your net worth. Car fact: Did you know that during the first year alone, a new car loses 20% of its value, according to Bankrate.com? Not a wise a way to use your equity.

Step 8: Adopt a Successful Mindset

The best way to become successful is to do what others have done and there is no better way to learn their habits than to read about them. There are many resources out there to teach you how to do it. Read everything you can on finance and credit. There really are no short cuts or magic formulas to success. It takes discipline, hard work, and applying what others have done successfully. It’s an “if others can do it so can I mindset” that will lead you out of debt and on your way to success. The thing you cannot change right now is that you have debt. The thing you can change in the future is to have less debt and eventually no debt. “Staying on track” and finding success is all up to you!

This has been Real Estate Rob putting you on the Inside Track to home ownership.