Many novices do not know the laws that protect their investment. In Alabama Huntsville house values are causing many to purchase their new homes now. And they all neded to know the laws before they apply.
The Consumer Credit Protection Act and the Fair Credit Billing Act grants you the borrower numerous rights.These are legislation passed by your U. S.Congress.
You have the right as a home buyer:
1 To shop for around for the best loan among different mortgage lenders and brokers.
2 To be informed of your loan’s total costs. This includes interest rates, points, and other fees assessed by a lender or broker.
3 To be informed of any fees that will not be refunded to you in the event that you cancel the loan agreement.
4 To know the reason for denial if your loan is turned down.
5 To receive a free copy of the credit report that was used in denial of your loan. The lender should give you information about obtaining this credit report.
6 To have income from child support, alimony, and pension considered in qualification for a loan.
7 To ask questions about anything you do not understand about loan charges and terms.
8 To know what you and the lender are paying the mortgage broker for a loan.
9 To be considered for a loan regardless of age (unless under the legal age to sign a contract), gender, marital status, race, color, religion, and national origin.
10 To receive an appraisal report for the home.
RESPA
Because of the Real Estate Settlement Procedures Acts, administered by the Department of Housing and Urban Development, mortgage lenders and brokers cannot charge certain types of fees.
Lenders are required, by the RESPA to disclose certain information to you pertaining to your application for a mortgage. You, as a home buyer, must receive a Good Faith Estimate from the lender or mortgage broker.The Good Faith Estimate, (GFE) is an estimate of fees that you will be charged for your mortgage.Your lender must provide you with a document titled the Mortgage Servicing Disclosure Statement if said loan is to be transferred to or serviced by another lender.
Finally, the Information Booklet, must be given to you as a home purchaser.You must receive all of these documents within three days after your application has been received. In the event that your application is denied within three days, the lender does not have to provide with the documents.
These laws have been put into place to protect you, as a consumer.Educating yourself to the rights you have as a home buyer brings you one step closer to obtaining a mortgage loan. Present yourself to mortgage lenders and brokers as a home buyer that is aware of the rights provided by the law.