Explore the key players involved in the mortgage process, from lenders and borrowers to appraisers and mortgage servicers.
The lender (mortgagee) and the borrower (mortgagor) are the two primary parties to a mortgage.
Several tertiary players assist with the mortgage and homebuying process, including real estate agents, title companies, escrow agents, inspectors, appraisers, and insurance agents.
Understanding the parties and their responsibilities may make for a smoother process, as you’ll know which party to contact as questions arise.
Whether you’re buying a home or refinancing an existing mortgage, knowing the parties and understanding their roles may improve your experience as a homebuyer or a homeowner refinancing your mortgage. When you’re clear on everyone’s roles, you know who to contact with questions and who to hold accountable for specific tasks. This may help you feel more in control of the process and be more satisfied with the outcome.
And the mortgage process requires more than just you and your home loan lender.
How many parties does a mortgage involve? The exact number depends on factors like loan type, location, and the specifics of a given property, but many borrowers are surprised to find that it may take more than a dozen parties to successfully originate a mortgage.
The Two Main Parties in a Mortgage
All mortgages include a mortgagor and a mortgagee.
Mortgagor (Borrower)
As the borrower, you apply for a mortgage (which includes providing proof of income and assets), agree to the loan terms, and repay the loan as scheduled.
Mortgagee (Lender)
Your mortgage lender sets underwriting guidelines to determine who qualifies for a home loan (in accordance with applicable laws and regulations to ensure fair housing opportunities for everyone) and reviews mortgage applications.[1] When an applicant is approved, the lender provides the funds to the borrower as outlined in the loan agreement.
In many cases, there are multiple individuals representing your lender in your transaction. The following professionals may be assigned to your account:
A mortgage loan officer. This is your point of contact for the loan. They explain your options, answer your questions, and collect documents related to your application.
A loan processor. This person handles the administrative side of your loan application, keeping the process moving to help avoid potential delays. They may verify information, order third-party reports (such as credit checks and appraisals), and prepare the file for underwriting.
The underwriter. Mortgage underwriters confirm compliance with lending guidelines and evaluate the potential risk of lending funds to borrowers. The underwriter is the party that ultimately determines whether a loan is approved or denied.
Additional Key Participants in the Mortgage Process - Whether Buying or Refinancing
In addition to the mortgagor and mortgagee, the following players have a role in helping you secure a mortgage or refinance.
Appraiser
The appraiser provides a professional opinion of the property’s market value (called a home appraisal) to confirm that it supports the loan amount. This also helps confirm that you're not paying more than the property is worth.
Credit Bureaus
The credit bureaus (Experian, Equifax, and TransUnion) track debts and payments to determine a credit score, which represents a borrower's creditworthiness.[2] They supply your credit report to the lender to be used in underwriting your mortgage.
Homeowners Insurance Agent
Lenders require homeowners insurance on mortgaged homes to protect their financial interest in the property.[3] These policies include hazard insurance to protect against financial damage from events like house fires, storms, or theft. The insurance agent sells you the policy and provides proof of coverage for your lender.
Notary Public
The notary public verifies identities and witnesses signatures on the closing documents.
Mortgage Servicer
The mortgage servicer collects the monthly mortgage payments, manages mortgage escrow accounts, and handles customer service once the loan is established. This may or may not be the original lender.
County Recorder
The recorder is the official who records the deed and mortgage, which makes the transfer of ownership and liens official in the public record.
Homeownership Association (HOA)
If the property is located within an HOA, the association provides financial disclosures and project documentation as required by lenders. This helps to confirm that the HOA is stable and does not present a financial liability to you, as the borrower, or to the lender.
Homeownership Counselor
Some loan programs (such as specialized first-time homebuyer products) may require borrowers to undergo a mandatory course on homeownership. A homeownership counselor educates borrowers on budgeting, loan obligations, and homeownership responsibilities
Homeownership Counselor (If Required).
Provides mandatory education for certain first-time buyer programs or specialized mortgages and issues completion certification when applicable.
Additional Key Participants in the Mortgage Process - When Buying a New Home
The following parties are typically involved only when originating a mortgage on a new home purchase.
Buyer’s Real Estate Agent
Your buyer’s agent helps you find suitable properties, represents you in negotiations, drafts purchase offers, coordinates timelines, and generally helps facilitate the transfer of the property from the seller to you.
Listing Agent (Seller’s Real Estate Agent)
The listing agent represents the seller, negotiating on their behalf and making sure all contract requirements are met on their end for the deal to close.
Seller
The seller cooperates with inspections, appraisals, and title requirements. They then transfer ownership of the property to you upon closing.
Title Company
The title company researches the property’s ownership history, identifies liens or claims against the property, and generally ensures a clear title transfer from the seller to the buyer.
Title Insurance Underwriter
Title insurance provides financial protection in the unlikely event that a claim or title defect arises after closing.[4] The underwriter assesses the risk for the policy.
Escrow Agent
An escrow agent is a neutral third party that holds funds and documents, coordinates closing, and disburses money once conditions are met in accordance with the purchase agreement. (In some states, the title company fills this role.)
Home Inspector
The home inspector is a licensed professional who evaluates the property’s physical condition and completes a home inspection report, identifying visible defects or safety issues.
Surveyor
A surveyor confirms property boundaries, easements, and encroachments (when requested or required by the buyer, lender, or title company).
Real Estate Attorney
Some states require real estate attorneys to oversee title review, prepare documents, and conduct the closing.
Other Potential Participants
The following parties may be involved in a purchase, refinance, or both, if the situation warrants it.
Mortgage Insurance Provider
If you put less than 20% down on your home purchase, you may be required to carry mortgage insurance, which financially protects the lender from borrower default.[5] The lender typically arranges the policy, so you, as the borrower, don’t typically interact with the mortgage insurance provider.
Government Entities as Guarantors
Government-backed home loans, such as FHA loans guaranteed by the Federal Housing Administration, VA loans guaranteed by the Department of Veterans Affairs, and USDA loans guaranteed by the United States Department of Agriculture, must meet specific underwriting criteria for the applicable programs.
Involvement varies by program. As an example, if you are applying for a VA loan, you may need to secure your Certificate of Eligibility (COE) from the VA.[6]
Mortgage Broker
A mortgage broker is an intermediary that matches home buyers to home loans. Some homebuyers choose to work with mortgage brokers who shop loan options on their behalf. Others prefer to contact lenders directly for more control over the process.
Contractors
If the property requires repairs to meet loan standards (such as the VA’s minimum property requirements (MPRs) for VA loans), the seller may need to hire contractors, including electricians, plumbers, or HVAC specialists, to complete the work.
Specialty Inspectors
Depending on the property’s features and the result of the general home inspection, you might hire specialty inspectors to assess specific issues. Pools, chimneys, and sewer lines, for example, are not typically covered by the general home inspection. You may also consider specialty inspectors to look into potential issues like pests, mold, or radon.
Home Insurance Broker
A home insurance broker matches homeowners to insurance providers and policies. This may be helpful if you live in a high-risk area and are having a difficult time finding insurance companies to cover your area.
Flood Insurance Provider
Homes located in floodplains and areas of concern often require a special flood insurance policy. This could be provided by the same company issuing the homeowners insurance policy, or you might find another provider.
Tax Advisor
You might choose to have a tax advisor review your purchase or refinance plans to estimate the tax liability of the transaction.
Get to Know Your Mortgage Players
While you might not interact with every party involved in your mortgage, it’s helpful to understand everyone’s role. Simply knowing who is responsible for each task may help you feel more comfortable with the mortgage process. It may also help you avoid confusion or delays when questions or problems arise.
Working with trusted professionals makes for a smoother mortgage experience. Contact a PNC Mortgage Loan Officer (MLO) today to learn more about getting a new mortgage or refinancing an existing one.
