Closing on your new home is a complicated process that involves dozens of pages of paper, multiple signatures and many professionals. You’re committing yourself to a purchase that could impact your life for decades. You want to know what you’re paying for and why.
It’s easy to feel overwhelmed and to just ignore all the details, but doing so puts you in a very vulnerable position. It is possible for mistakes on your closing documents to impact your ownership rights or finances for years to come. It’s also possible for you to become the victim of fraud during a real estate transaction.
Reviewing and making sense of your closing documents before you sign everything can help protect you from fraud and costly mistakes.
Every expense and fee will be somewhere on your closing disclosure
It can be very hard to track what your money goes when conducting a six- or seven-figure transaction. Those hoping to funnel money away from buyers or sellers could add questionable line items to a closing disclosure to hide unscrupulous behavior.
Closing disclosures list the costs and fees associated with your real estate purchase. They should account for every cent you pay or finance. However, you have to know how to understand the charges in order to identify things that shouldn’t be there.
Working with an experienced real estate attorney can help you proceed with confidence because they can review every document for accuracy and ensure that signing it is in your best interest. If you don’t understand line items on your closing disclosure, asking your attorney about them before you sign could help you move forward with better understanding and confidence.