Anything to lookout for in a loan signing?

Bushman · Feb 28, 2013

I'm supposed to go to the title company soon and sign my home loan documents. Being that I'm not a lawyer or a real estate or home loan expert, anything in particular I should watch out for in there?

My "Good Faith Estimate" states that my interest rate can never rise, whether I pay on time or late, and that my principal balance will never rise paying on time or late either. Those are the key points I'm worried about. It's an FHA loan.

Looking at the GFE, everything looks in order. But I intend to read every one of the 75 pages of the loan document lol.

good2eat · Feb 28, 2013

If it's an FHA loan with a fixed rate there is nothing to worry about as far as the actual loan is concerned.. Just make the the rate on the promissory note is the stated rate you expected.

Get a copy of the settlement statement from the Escrow officer PRIOR to going to sign. It can be faxed or emailed. This will give you the opportunity to compare the actual costs to the Good Faith Estimate so there are no surprises. It's not likely there are any surprises today do to laws in place but it's wise to compare ahead of time anyway.

As far as the loan documents are concerned, though you can certainly take the time to read them thoroughly, IMHO, it's a waste of time for an FHA loan. First, all FHA loans have verbiage that is both consistent and required. Second, even if you read something you don't like, you can't change them - it's either sign them as is or you don't get the loan. No if buts or maybees....