Should I have a lawyer review the mortgage papers?
Get Legal Help Today
Secured with SHA-256 Encryption
UPDATED: Jul 15, 2021
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Customs vary from state to state, but regardless of custom, we strongly recommend that you at least consult with a knowledgeable real estate attorney before you sign any papers if you are going to be purchasing or selling a home and/or obtaining or granting financing.
The purchase of a house is a major investment, and taking out a mortgage involves a major long-term expenditure. Paying a few extra dollars to a knowledgeable real estate lawyer at the time you are purchasing and financing the house usually can save you many times the legal fee over the years, not to mention possible legal problems. As discussed earlier, even the “mortgage contingency clause” may be critical to buyer and/or seller. A lawyer can help.
Real estate agents generally hate to see lawyers involved in real estate contracts, and some mortgage lenders also are not keen on the idea. From their perspective, lawyers can “kill the deal”. Bad (read that to mean inexperienced) lawyers sometimes kill good deals. While good lawyers may suggest that a party kill a bad deal, they also often help convert a questionable deal into “win win”.
For the real estate agent, mortgage broker and mortgage officer at a direct lender, even a very a bad deal generates a commission. On the other hand, for the home buyer or seller a bad deal can generate major problems and expense. For example, the lawyer might point out problems, such as the “easement” that allows a neighboring landowner to drive tractor trailer trucks through what would be your backyard. A lawyer might also give you advice to demand or reject conditions, such as responsibility for removing a leaking oil tank and cleaning up environmental damages.