A mortgage is likely the largest loan you will take out over the course of your life, and before doing so, you should fully understand your legal rights in the process. By becoming familiar with your legal protection, you can best avoid fraudulent loans and making costly mistakes.
- You have the right to actively seek out the best loan for you and your family. Consult different lenders and brokers to examine varying mortgage costs and charges.
- You should always be informed from other parties about your total costs; these range from the mortgage’s interest rate, to other points and fees that will be assessed. In addition, you are allowed to ask to see the Good Faith Estimate of these charges. Anyone who is trying to pull the wool over your eyes on costs is denying you your borrower’s rights.
- If there are nonrefundable fees, you should be the first to know. Lenders are obligated to be transparent about all fees; brokers are regulated to explain to you every service they are providing, as well as how much they are getting paid for managing your account. If these firms ever fail to make their fees evident, they are denying you your rights and trying to confuse you.
- You always have the right to know why an application for a loan was not accepted. Under no circumstances are any lenders allowed to discriminate to whom they lend based on race, color, religion, national origin, marital status, age, or whether any amount of income is from public assistance.
Be sure to remember that you have plenty of rights you can exercise when buying a mortgage. To learn more about these legal rights visit the Housing and Urban Development (HUD) website.