May 22nd, 2015 8:23 AM by Jackie A. Graves, President
When you shop for a mortgage
loan, you have certain rights that are guaranteed by The Real Estate Settlement Procedures Act (RESPA).
RESPA is a consumer protection statute from the Department
of Housing and Urban Development (HUD).
RESPA is designed to help you
be a better shopper during the home buying process. Knowing your rights before
you enter into any loan agreement will help you get the best loan possible. You
have the right to:
Shop for the best loan for you and compare the charges of
different mortgage brokers and lenders.
Be informed about the total cost of your loan including the
interest rate, points and other fees.
Ask for a Good Faith Estimate of all loan and settlement charges
before you agree to the loan and pay any fees.
Know what fees are not refundable if you decide to cancel the
Ask your mortgage broker to explain exactly what the mortgage
broker will do for you.
Know how much the mortgage broker is getting paid by you and the
lender for your loan.
Ask questions about charges and loan terms that you do not
A credit decision that is not based on your race, color,
religion, national origin, sex, marital status, age, or whether any income is
from public assistance.
Know the reason if your loan was turned down.
Ask for the HUD settlement cost booklet "Shopping for Your
Lenders offer different
mortgage products depending on your credit scores, income-to-debt ratio,
payment histories, how much you want to borrow and the term of the loan.
Ask your lender to show you the
advantages and disadvantages of each loan product so you can choose the best
one to suit your needs. When you make your choice, be sure to compare the same
product with the same product offered by at least two other lenders.
Written by Blanche Evans | To
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