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Should You Have a Real Estate Attorney Look Over Your Mortgage Documents Before Signing?

Posted on in Real Estate Law

fairfield county real estate attorneyIt is no secret that the real estate market exploded during the COVID-19 pandemic and has continued that momentum. If there are any doubts about the condition of the market, all one has to do is take a look at the number of mortgages that have been taken out. According to national data, the year 2021 was a record year, with more than $1.6 trillion granted in mortgages, the majority of those mortgages to first-time home buyers. This number surpasses the last record set, in 2005 of $1.15 trillion, and surpasses the second-highest record set just in 2020, where lenders gave out $1.5 trillion in mortgages.

Housing Boom

Although the prices of homes increased by more than 19 percent during 2021, there are a number of reasons cited by economic analysts for the phenomenal increases in the housing market. The labor market is still going strong, including increases in pay – which grew more than 4.5 percent nationwide. The market is also being driven by low interest rates, leading many first-time home buyers to sign on all those dotted lines required during a property closing. It is estimated that almost 70 percent of people purchasing new homes in 2021 were buying their first homes.

Do I Need a Lawyer to Look Over My Mortgage Agreement?

However, just because there is so much mortgage activity going on, does not mean that anyone who is applying for a mortgage to purchase a home should not take the appropriate steps to protect themselves. Even if you are dealing with a financial institute that you have been doing business with for years, there are still issues that could arise that end up costing you thousands of dollars.

The number of documents you are required to sign during the closing of your new home could almost cause a writer's cramp. The majority of those documents pertain to the mortgage you are borrowing. Many of these documents are filled with legal and financial jargon that can be difficult to decipher. This is why it is critical to have an attorney who represents you – and not the bank or lender – look over these documents before you sign anything.

There have been many cases where figures are off – even just by a tenth of a percentage point – which would mean hundreds of dollars more in your monthly payment and thousands of dollars more over the duration of your mortgage. For example, instead of the agreed-upon rate of 3.4 percent, someone typed 3.9 percent and now your monthly budget has been totally thrown out of whack. Remember, even if the error was just a typo by the bank, once documents are signed, you are locked in.

Your attorney will carefully examine the entire mortgage agreement to ensure that everything that agreement contains is everything you and the lender originally agreed upon.

Call a Fairfield County Real Estate Lawyer Today

If you are purchasing a home, having a seasoned Stamford, CT mortgage attorney look over your mortgage agreement, as well as any other documents and contracts that apply to the purchase, can help ensure your interests are protected. Contact Law Offices of Daniel P. Weiner at 203-348-5846 to schedule a free consultation.

Source:

https://therealdeal.com/2022/01/02/in-2021-more-money-was-borrowed-to-buy-homes-than-ever-before/