Disclosures: What you need to know BEFORE the closing

Disclosures

dis –close
1. to expose to view, as by removing a cover; uncover.
2. to make known (something heretofore kept secret).

dis –clo –sure
1. the act or process of revealing or uncovering.
2. something uncovered; a revelation.

Disclosures Table of Contents

Disclosures:
What are all those forms you sign as part of the real estate transaction?

KNOW WHAT YOU’RE AGREEING TO! The old caveat still applies, “Buyer beware!”

This section is dedicated to helping consumers and professionals understand many of the forms requiring your signature at closing. Not every form in this section will part of every closing, but most of them will be included. It would be worth your time and effort to study this section carefully.

Frequently people say you’re signing your life away when you buy a house; they aren’t joking. It is certainly obvious to anyone buying a house that a large financial commitment will be the outcome of signing all those forms. The truth is you are signing away many rights with the various disclosures which are part of the closing package. In effect, the lender and other unseen parties to the transaction are silently saying “We’re telling you now, don’t complain later.”

If you understood what you were signing, that would be okay. Most often, though, consumers do not understand what is being disclosed. The purpose of this lengthy section is to help you better understand.

You are headed to the closing on your new home or investment property. You are excited and perhaps a little bit nervous. It is my hope that you found this material BEFORE you signed those documents.