Why a Lawyer Is Essential in the Mortgage Process

There’s no doubt that buying a home is among the largest financial investments that you’ll make throughout your lifetime. That’s why it’s important that proper financing is established and you fully understand your obligations as a borrower. A lawyer is essential in this process.

If you’ve already had a mortgage, you’ll remember the stack of paperwork you’re directed to review before you sign. If this is your first time, you’ll quickly understand why you must set an appointment with your real estate lawyer to take care of all the signing.

Documentation You’ll Sign at Your Lawyer

• Direction to the lender instructing where the money being loaned must go (eg, to pay creditors, if applicable, or in full to your lawyer’s trust account)
• Lender’s standard charge/mortgage terms
• Title insurance statutory declaration
• Other situation-specific documentation

As your mortgage broker, I’ll always explain what to expect during the signing, but real estate lawyers are specialized professionals who understand the way lenders draft mortgage documents. Your lawyer knows what to look for from a legal standpoint to ensure your best interests are always top of mind. That’s why it makes sense for your lawyer to go over the final details with you before you enter into the binding agreement.

Reviewed by Your Lawyer

• Specifics surrounding your mortgage loan
• Security you’re providing to the bank in exchange for the loan
• Lender’s standard charge/mortgage terms (including what recourse the lender can take if you fail to make your mortgage payments or other payments, such as property taxes, on time)
• What’s currently listed on the home’s title

Your lawyer’s job is to also ensure that any outstanding mortgages are paid out using the money included in the new mortgage and then discharged from the title to your property.

Have questions about what to expect during mortgage signing with your lawyer, or your mortgage in general? Answers are a call or email away!