Who Does What and Who Pays in a Home Purchase

Finding and Buying a Home · Updated April 2, 2026

Who Does What in a Home Purchase or Sale

Buying or selling a home involves several professionals, each with a different role. Understanding what each one does, who they typically work for, and how they are usually paid can help reduce confusion and prevent misplaced expectations.

Big idea No single professional is responsible for protecting every party from every risk. A smoother transaction usually happens when each person stays within their role and the buyer or seller understands what questions to ask.

Mortgage Lender

The lender provides the mortgage loan used to purchase the home.

What they do:

Review the borrower’s income, credit, debt, and documentation.
Determine whether the loan meets underwriting requirements.
Set loan terms such as interest rate, monthly payment, and required closing costs.
Issue required loan documents and fund the loan at closing if approved.

Who typically pays:

The borrower.
Costs are generally reflected in interest, lender fees, and other closing costs.

Important to know: The lender decides whether the loan fits its standards. That is not the same as deciding whether the home is the right financial choice for you.

Real Estate Agent or Broker

A real estate agent or broker may represent the buyer, the seller, or in some cases both parties depending on the agreement and what state law allows.

What they do:

Help buyers find homes or help sellers market a property.
Prepare and present offers, counteroffers, and related paperwork.
Negotiate price, timelines, contingencies, and other terms.
Coordinate communication through contract and closing.

Who typically pays:

Compensation is negotiated and can vary by agreement and transaction structure.
In many transactions, payment is made from sale proceeds, but the final arrangement can differ.
Buyer representation terms and compensation should be clearly stated in writing.

Important to know: Representation depends on the agency agreement, not simply on who writes the check. Also, not every real estate agent is a REALTOR®. REALTOR® refers specifically to a member of the National Association of REALTORS®.

Home Inspector

The home inspector evaluates the physical condition of the property.

What they do:

Examine major systems such as roof, plumbing, electrical, HVAC, and structure.
Identify visible defects, maintenance concerns, and safety issues.
Provide a written inspection report for the buyer’s review.

Who typically pays:

Usually the buyer.
Inspection fees are often paid directly at the time of service.

Important to know: A home inspection is different from an appraisal. The inspection is for the buyer’s protection, and it is best handled by an independent inspector who is accountable to the buyer.

Appraiser

The appraiser provides an independent opinion of the property’s market value.

What they do:

Evaluate the property based on its condition, characteristics, and comparable sales.
Help confirm whether the value supports the loan amount.
Provide a formal appraisal report used in the lending process.

Who typically pays:

Usually the buyer, often through an appraisal fee tied to the loan process.
The appraisal itself is generally ordered by the lender.

Important to know: The appraiser’s role is to provide an independent valuation. Buyers are generally entitled to receive a copy of the appraisal or other valuation obtained by the lender.

Also Commonly Involved

Depending on the transaction, other important participants may include a title company, settlement or escrow agent, closing attorney, and insurance providers.

Why this matters: Each one has a different function. Knowing who handles title work, closing documents, escrow, and insurance can prevent delays and reduce confusion near closing.