23 April 2007

Your Rights As a Tooele Home Buyer

Do you know your rights as a Tooele Home Buyer?

Getting a loan for your Tooele home purchase can be a confusing thing. Unfortunately, this confusion can make a buyer ripe for the picking by unscrupulous lenders, appraisers, and, yes, real estate agents too. The bad news is that Utah again is near the tops in the nation in mortgage fraud. The good news is that the federal government has passed laws to help protect home buyers from these activities.  As a Tooele home buyer, you have been given certain rights as you search for a mortgage loan for your home.  Being aware that your rights as a Tooele Home buyer  can help protect you.

Borrower’s Rights

Here are a few of the rights granted you by both the Consumer Credit Protection Act and the Fair Credit Billing Act.  These are laws passed by the United States Congress.

You have the right:

·       To shop for around for the best loan among different mortgage lenders and brokers. (they don't need to be Tooele lenders)

·       To know your loan’s total costs.  This includes interest rates, points, and other fees charged by a lender or broker.

·       To know of any fees that will not be refunded to you if you cancel the loan agreement.

·       To know the reason for denial if your loan is turned down.

·       To receive a free copy of the credit report that was used in that denial. The lender can give you information about obtaining this credit report.

·       To have income from child support, alimony, and pension considered in qualification for a loan.

·       To ask questions about anything you do not understandabout the Tooele loan being offered.

·       To know what you (and the lender!)are paying your mortgage broker for your loan.

·       To be considered for a loan regardless of age (unless under the legal age to sign a contract), sex, marital status, race, color, religion, and national origin.

RESPA

The Real Estate Settlement Procedures Acts, administered by the Department of Housing and Urban Development, prevents mortgage lenders and brokers from charging certain types of fees.

Lenders are required, by the RESPA to disclose certain information to you pertaining to your application for a mortgage.  You must receive a Good Faith Estimate from your lender.  The Good Faith Estimate gives an estimate of fees that you will be charged for your Tooele loan. 

Also, the Special Information Booklet, with information about real estate settlement services, must be given to you.  These documents should be given to you within three days after you make application.  If your application is denied within three days, the lender doesn’t have to give them to you. These laws are here to protect you, from scams, discrimination, excessive fees, and other bad business practices. An educated home buyer is much more difficult to take advantage of! Educate yourself to the rights you have as a Tooele home buyer.

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