States that Require Attorneys for Purchase and Refinance Closings

Not all states require an attorney for closing a purchase or refinance transaction. In many states, a title company can close these transactions. I myself, do not have a list of which states require an attorney. I would advocate to have an attorney involved, even though this increases your closing costs. Let me explain.

First, I am not an attorney and cannot give you legal advice. However, my experience in the mortgage industry shows a definite value in using an attorney. Even if you think you are an expert in real estate and mortgages, let me suggest that unless you work as a mortgage professional or real estate professional you are at a disadvantage in terms of overall knowledge and understanding of the processes. You are not buying/refinancing a used car or furniture – the stakes are higher and you need to understand that. I welcome clients who want to understand all about these processes, but unless you are in these industries every day you do not know of changes in legislation and regulations. Please do not take these statements as condisention. I am in these industries every day – it is my profession and responsibility to know and understand changes and I have the resources that make me aware of them minute by minute – consumers do not and that is why they need to depend on other professionals (a bitter pill and expense, I admit, but I believe better overall for consumers – read my other posts). 

In defense of using an attorney – for a purchase transaction the attorney is your advocate and defense/offense against unfair, burdensome, illegal and onerous contract and loan provisions. On both purchase and refinance transactions, your attorney will review the lender and/or mortgage broker charges. The attorney will see the fees and settlement costs. The attorney will be able to ferret out charges that are excessive – beyond reasonable and customary for your area and will most likely know the mortgage providers in your area and their reliability.

Unfortunately, even educated borrowers fall victim to unscrupulous mortgage tactics that suggest these charges are "routine fees – everyone charges them". This happens more often than I’d like to see in our industry.

In addition, your attorney will be able to quickly identify the mortgage product the loan officer is suggesting for you. Is it appropriate for you? Do you understand it? How did you and your loan officer determine this is the appropriate loan product for your situation.? In short, the attorney is your advocate. Your advocate ready to stand up to Realtors, loan officers, brokers, sellers, etc. So can you complete the transaction without an attorney in many states? Yes you can. But don’t be penny wise and pound foolish. The consequences could cost you much more.

Last, I advise my clients to develop relationships with professionals they use. After the transaction, these relationships are very valuable. In most cases, it ensures that the professional will take your call rather than scheduling a “fee costing” consultation, and answer quick questions and/or stear you in the right direction. This is priceless. Call me a lawyer lover, but I prefer to have someone covering my back in matters where I’m not always up to date and to ask the questions I was hesitant to ask.