“Why do I need an attorney to buy a house if the bank that’s giving me a mortgage provides one?”
The negotiations take place before your lender will approve a mortgage, and you want to ensure you have someone advocating on your behalf.
You place an offer to buy a house by submitting a written Offer to Purchase (“OTP”) containing basic terms – identifying the property you are buying, a purchase price, a deadline to inspect the property, and a closing date. The OTP also states that the buyer and seller must enter into a written Purchase and Sale Agreement (“P&S”), containing many more details about the transaction.
All of this happens before you even apply for a mortgage. Your lender will review your mortgage application, verify your ability to make monthly payments, and issue a “commitment letter” promising to lend you money to complete the purchase within a specific number of days. Only then will the lender retain an attorney to generate the paperwork required to close the loan. The lender’s attorney does not help you up to this point.
Steven B. Rosenthal of The Rosenthal Law Firm has more than 40 years of experience working with clients in Massachusetts on the purchase and sale of real estate. Don’t take a chance on such a big purchase — call or email today to set up your free consultation.