Reviewing closing documents prior to closing

Reviewing closing documents prior to closing

Bristol, RI · Member since 2014 · 33 posts · 12 votes

I'm recalling the pressure I felt while reviewing the mortgage and closing documents at the table when I purchased my first home. What seemed like hundreds of documents requiring signatures and initials, which realistically would take a solid weekend of focused reading to not only get through but to understand. Instead, my eyes were glazed over while someone summarized over my shoulder "Oh, that's just required by the state.....", "These pages aren't important, just look at the summary on this page.", "This just says that you're not going to sue us if blah blah blah". I threw trust to the wind and signed away. I guess everything worked out, we lived there for five years and just recently sold that house.

Is it unreasonable to request the closing documents to review before the actual closing? I've never heard of this before, but it seems like a basic request. I'd prefer to review in private, without any pressure, just to make sure I understand everything without everyone standing over my shoulder. 

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Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
10y

Did you know a law was passed back in October? Now buyers are required to be given the final closing disclosure a week or two in advance which goes over all the numbers. 

Your prayers are answered!

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  • Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
    10y

    Did you know a law was passed back in October? Now buyers are required to be given the final closing disclosure a week or two in advance which goes over all the numbers. 

    Your prayers are answered!

  • Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes
    10y

    I will also add that if you are getting a mortgage, a lot of the paperwork is redundancies. The bank makes you sign 199 pages stating you are who are you and you are not committing mortgage fraud. It sounds like you could have hired a better broker or attorney to walk you through the documents at the closing table. 

    Cash closings are much quicker as you are just signing a few documents. 

  • Bristol, RI · Member since 2014 · 33 posts · 12 votes
    10y
    Originally posted by @Sarah Ziehr:

    Did you know a law was passed back in October? Now buyers are required to be given the final closing disclosure a week or two in advance which goes over all the numbers. 

    Your prayers are answered!

     No way! Is that a federal law, or a state law? I think that's great news. Thanks!

  • Crystal SmithPro Member
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    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    10y
    Originally posted by @Matt Donley:

    Is it unreasonable to request the closing documents to review before the actual closing? I've never heard of this before, but it seems like a basic request. I'd prefer to review in private, without any pressure, just to make sure I understand everything without everyone standing over my shoulder. 

     New Truth in Lending regs require that all closing documents be delivered to clients a minimum of 3 days prior to closing.  It's supposed to eliminate everything you describe in the post. 

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