Reviewing Closing Documents… again
June 9th, 2008 by Lee Mason, The Masters Realty Group LLC ;
1 Comment
Tags: Buyers · Closing · Real Estate
1 response so far ↓
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If a borrower wants to spend more than an hour to read an inch thick stack of documents, I do highly recommend that they advise the Loan Originator and Escrow Officer. Unless it’s a real short closing, there should be enough time for the lender to provide escrow with the loan documents in a timely manner to accomodate the buyer’s needs.
At the very least, I encourage buyers (and sellers) to get a copy of the estimated HUD-1 Settlement Statement 2-3 days before their signing appointment so they have time to review the “estimated” final figures.
This morning I read a post (Reading Redux) at Credit Slips regarding a familiar lament about not reading all documents at closing. It’s a subject I’ve visited before.
Lenders are notorious for getting document to escrow late or, at the very least, at the very last possible moment. Obviously it helps to select a trustworthy lender (and a service oriented escrow officer) who you’ve forewarned you’ll need three days to review all documents prior to closing. This combined with a provision in your purchase and sale agreement (to the effect of: buyer shall have 3 days to review closing documents prior to closing… in the event documents are not avail… closing shall be extended…. but in no event later…) should provide you ample time for review.
Even though I always recommend it, it’s been my experience few buyers read all the paperwork at closing (I attend client closings). Unless prepped, they don’t know the important things to look for hidden in the blizzard of paperwork. And why should they? They don’t deal with it every day.
Get an agent who knows what they’re doing and take the time to do it right. There’s always time…. there are no emergencies in real estate.