Home Financing Advice From A Lawyer
I sometimes dream that if all those home-buyers who signed on for adjustable rate mortgages had paid less than 1% of the purchase price of their new home to have an attorney review their contracts and home financing documents that we would not be in the mess we are in today.
Just as real estate agents get paid based upon sales they make, which creates a certain level of conflict between them and their clients, so too do mortgage brokers get paid based upon signing up qualified applicants for various types mortgages the lenders are trying to sell.
Nobody is placing blame. It’s just a consequence of their profession and compensation structure.
A lawyer can help review the Good Faith Estimate (GFE) from the mortgage lenders and compare them to one another as well as to the HUD-1 Closing Statement you receive prior to closing to alert you if there are any red flags, unnecessary fees or if the home loan type is simply not in your best interest.
Remember, this is a major purchase you are considering. If it turns out not to be a good deal, whether because of contract terms, financing terms or some other matter, you want an objective third party to help steer you away from the deal.
Owner take-back financing can be necessary or even desirable to help facilitate a sale when the buyer does not qualify for a conventional loan in the amount of the purchase price, or for other reasons. This is even more common in For Sale By Owner and Rent To Own deals.
In such situations it is important that the Note and Deed of Trust / Mortgage documents are drafted by a professional whose task it is to protect the client, and who can make sure all the necessary terms are present and in the form that is appropriate to the particular situation.
You would be surprised at the number of Loan Notes I receive from clients that are on a single piece of paper without addressing essential terms or being properly executed, and which do not make adequate mention of collateral, default or even payback terms.
You don’t want to take a chance when so much money and often, personal relationships with friends or family, are at stake.
Your attorney can help you with all the financing terms and documents for your home purchase or home sale.