Many Massachusetts homebuyers feel surprised when they learn that getting a mortgage can affect who handles the closing. If you are buying a home with financing, you may assume you get to choose every professional involved in the transaction. In many financed residential purchases, that is not how it works.
Once you use a lender to finance the purchase, the lender will usually select the closing attorney. That often leads to a reasonable question: Why does the bank get to make that choice?
The lender wants its own interests protected
The short answer is that the lender has money at risk in the transaction. Before it releases loan funds, it wants to confirm that the title is clear enough to support the mortgage and that the closing documents properly protect its interest in the property.
In Massachusetts, the closing attorney in a financed transaction commonly represents the lender’s interests at the closing. That attorney examines the title, issues a certification of title and handles the transfer of funds. Although you may pay that fee as part of your closing costs, the attorney’s primary role in that setting is to protect the lender.
Massachusetts treats closings differently from some other states
Massachusetts does not handle residential closings the same way every state does. When a mortgage loan is part of the transaction, the closing process generally must be handled by a licensed attorney rather than a nonlawyer settlement company. That helps explain why the lender places so much importance on choosing counsel for the closing.
From the lender’s perspective, the closing is not just a signing appointment. It is the final step in a secured loan transaction. The lender wants an attorney it trusts to handle the legal work tied to that loan.
What the closing attorney usually does for the lender
The closing attorney’s work often includes several important tasks:
- Reviewing title issues that could affect the mortgage
- Preparing or coordinating the lender’s closing documents
- Conducting the closing
- Handling the receipt and disbursement of funds
- Making sure the mortgage and related documents are properly recorded
Those steps help the lender confirm that it receives the lien position and legal protections it expects before funding the loan.
That does not always mean the buyer has no legal support
The lender’s closing attorney does not automatically serve as your personal legal adviser. In some cases, the same attorney may represent both the lender and the buyer if the situation allows it and the conflict rules are properly addressed. In other cases, you may want separate counsel. That distinction becomes especially important if a title issue comes up, the purchase agreement raises questions or you want independent advice about risk before you sign.
Why buyers should understand this before closing day
For first-time buyers, this part of the process can feel counterintuitive. You are the one purchasing the home, yet the bank often chooses the attorney who handles the closing. Once you understand why, the process tends to make more sense. The bank chooses the closing attorney because that attorney helps protect the bank’s loan.
A real estate lawyer can help you understand where the lender’s role ends, and your own interests begin. That can be especially helpful if questions come up about the title, closing documents or unexpected issues before closing.
