Buying a home is likely the largest financial commitment you’ll make throughout your lifetime. That’s why it’s so important to do everything in your power to make an informed purchase every time you buy property.
Ensuring the proper financing process is followed and that you fully understand your obligations as a borrower are keys to your success. If you currently have a mortgage, you’ll remember the stack of paperwork you were directed to review before you signed. And, if you’re a first-time homebuyer, you’ll quickly learn why it’s so important to set an appointment with your real estate lawyer to take care of all the signing. It can definitely seem overwhelming.
As your mortgage agent, we can explain what all the terms and details contained within your mortgage agreement mean. But when it comes time to sign, it’s your real estate lawyer who will review the fine print and final details with you before you enter into the binding agreement.
Your lawyer is invaluable as he/she understands the way lenders draft mortgage documents and what to look for from a legal standpoint to ensure your best interests always remain top of mind. Your lawyer will review: Specifics surrounding your mortgage loan; Security you’re providing to the bank in exchange for the loan; Lender’s standard charge/mortgage terms (including what recourse the lender can take if you fail to make your mortgage payments or other payments, such as property taxes, on time); and What’s currently listed on the home’s title.
Among the documentation you’ll sign at your lawyer’s, expect to see:
- Direction to the lender instructing where the money being loaned must go (eg, to pay creditors, if applicable, or in full to your lawyer’s trust account)
- Lender’s standard charge/mortgage terms
- Title insurance statutory declaration
It’s also your lawyer’s job to ensure that any outstanding mortgages are paid out using the money included in the new mortgage and then discharged from the title to your property.
Have questions about what to expect during mortgage signing time with your lawyer, or your mortgage in general? Answers are just a call or email away!