Do You Need an Attorney to Review Your Loan Documents?

Once in a while we come across a borrower who would like to review their closing documents prior to signing them at the title company. Which is absolutely fine with us. But sometimes they do something silly like take them to an attorney, bring them back with various lines scratched out, saying we'll have to remove certain verbiage from our (pretty standard) documents and THEN they'll sign them.

At which point we have to tell the borrower they'll have to go ahead and ask their attorney if he'd like to loan them the $250,000 then, because we don't know any lenders who will alter their loan documents. "Oh," is their typical response, and then they sign the documents as they were prepared.

Ah attorneys -- can't live with 'em... can't live with 'em.

We've had other people spend two hours reading every line of their documents while we all sat there waiting too. All of us who work in this business generally verify about five or six things for accuracy and sign our names as quickly as possible -- because we know what's negotiable and what, simply, is not.

I actually ran across a good article today that lists the very things that are useful, helpful and/or very important to watch for when signing your loan documents. If you understand the basic things in this article, you shouldn't have to waste your money on an attorney -- who probably won't be very useful in the end anyway.

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