Personal Finance Advice

Whenever you enter into a financial agreement - whether you’re opening a checking account or getting a car loan - you will inevitably encounter some paperwork to sign.  In some cases, such as when you close on a mortgage loan, you will be faced with an intimidating pile of documents that you’re expected to sign relatively quickly.

The scenario usually goes like this:

1.  You are presented with some paperwork to sign that outlines the terms of the financial agreement.

2.  The representative summarizes the documents, points to where you should sign, and then hands you a pen.

3.  The representative and everyone else present sit back and stare at you while you sign the documents.  If you hesitate, ask questions, or stop to read the documents in their entirety, the representative might sigh or keep asking if you have other questions.

As humans, we want to be cordial and appear to trust people.  We may actually feel awkward asking questions about documents because we may feel as though this implies that we don’t trust the people presenting the documents to us.  We may also feel as though we look inept when we take the time to read the documents because everything has already been explained to us, hasn’t it?

The truth of the matter is that signing documents make them legally binding.  By signing documents, you are stating that you not only agree to the terms, but you understand the terms as they are presented to you. 

Taking the time to read financial documents before signing them is smart.  It really doesn’t matter if you wind up annoying the representative because it’s your job to make sure you aren’t getting into something that you never intended on getting into.  Ask questions, demand clarification, and walk away if something seems wrong and the representative is vague or flippant in response to your concerns.

Remember: If you feel pressured to sign something that you don’t understand it may be because you are indeed being pressured because something was placed within the documents that the representative hopes you don’t ask for clarification on.  This is not the time to fear insulting the representative.  Take your time signing documents and don’t be apologetic for requesting clarification.