Read the Fine Print!
Tuesday, November 29th, 2005No matter what type of transaction you may be planning, it is necessary to read the fine print. As frustrating as it is, with the “us versus them” mentality of today’s world, it’s imperative that you read every line of a contract, agreement, lease, lien, etc. Businesses, in all forms, have contracts for just about everything. Even the most simple exchanges.
When conducting business of any kind, the “bigger” the company, the “longer” the contract and the “finer” the print. Even when consumer protection is mandated by laws and regulations, many business use finely-printed caveats or loopholes to “stack the deck in their favor”.
Federal regulations require that the terms and conditions when you are borrowing money for a home be written out as part of the settlement paperwork. Those terms and conditions are there, but they may be buried in small type and legal jargon. I’ve seen settlement paperwork that even the closing attorney found cumbersome and confusing.
Once you have decided to purchase a home or refinance one and complete the loan process, you are scheduled for closing with a settlement agent, usually a real estate attorney or title company. With the real estate boom of the last several years, the number of closings an agent has to complete in one day can be huge. Agents rarely schedule more than an hour for any particular closing.
What you should do? Arrange to get there early. Ask to have the closing paperwork ready and take the time to read every word. When you don’t understand something, make a note and then ask your settlement agent to explain it. If the settlement agent is unable to answer your questions, call your loan officer.
Don’t sign the paperwork without having your questions addressed to your satisfaction.