9 Steps to Buying a Home

Step 2. Know Your Rights
Protect yourself. Know the laws that protect you from scams, unnecessary expenses, and discrimination in the process of homebuying.

Fair Housing Act prohibits discrimination in housing sales or loans on the basis of race, religion, color, national origin, sex, familial status (having children under the age of 18), or disability in the financing, sale or rental of housing.

Equal Credit Opportunity Act prohibits discrimination in any aspect of a credit transaction on the basis of race, religion, age, color, national origin, receipt of public assistance funds, sex, marital status, or the exercise of any right under the Consumer Credit Protection Act.

Pedatory Lending is abusive lending practices (loan fraud) that include making a mortgage loan to an individual who does not have the income to repay it or repeatedly refinancing a loan, charging high points and fees each time and packing credit insurance on to a loan. For more information go to www.hud.gov/offices/hsg/sfh/pred/predlend.cfm

• If you think you have experienced housing discrimination, you can call 1-800-669-9777 or to contact the local office nearest go online at www.hud.gov/complaints/housediscrim.cfm
• If after contacting the local office nearest you and you still have questions, you can contact:
  United States Department of Housing and Urban Development
  Office of Fair Housing and Equal Opportunity
  451 7th Street, S.W., Room 5204, Washington, DC 20410-2000
  Telephone: 202-708-0836 or 1-800-669-9777
  Fax: 202-708-1425
  TTY: 1-800-927-9275

Real Estate Settlement Procedures Act (RESPA) is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.

Truth in Lending Act (TILA) A Federal law that requires a lender to give full written disclosure of all fees, terms, and conditions of a mortgage loan, or any other loan, including the annual percentage rate (APR) and other charges. The Truth in Lending Act is something that can help you every time you apply for credit, no matter what sort. Also, anyone who wishes to borrow against their home equity, has three days, it's a legal right, to walk away from that home equity loan if they change their mind for any reason within three days of its issue, sometimes referred to as right of rescission or right to rescind or right to cancel.

Home Equity Loan Consumer Protection Act requires creditors to disclose terms, rates and conditions about the home equity loan plan it offers, such as annual percentage rate (APR), miscellaneous charges, payment terms, and information about variable interest rate features, first when you receive an application and again before you first use the line of credit. If the disclosed terms change, the consumer can refuse to open the plan and is entitled to a refund of fees paid in connection with the application. The Act also limits the circumstances under which creditors may terminate or change the terms of a home equity plan after it is opened.

Your Rights

You should be aware of certain rights before you enter into any loan agreement:

• You have the RIGHT to shop for the best loan for you and compare the charges of different mortgage brokers and lenders.
• You have the RIGHT to be informed about the total cost of your loan including the interest rate, points and other fees.
• You have the RIGHT to ask for a Good Faith Estimate of all loan and settlement charges before you agree to the loan and pay any fees.
• You have the RIGHT to know what fees are not refundable if you decide to cancel the loan agreement.
• You have the RIGHT to ask your mortgage broker to explain exactly what the mortgage broker will do for you.
• You have the RIGHT to know how much the mortgage broker is getting paid by you and the lender for your loan.
• You have the RIGHT to ask questions about charges and loan terms that you do not understand.
• You have the RIGHT to 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.
• You have the RIGHT to know the reason if your loan was turned down.
• You have the RIGHT to ask for the HUD settlement costs booklet "Buying Your Home."

For "Buying Your Home" and other helpful information about RESPA, visit www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm
For other questions, call 1-800-569-4287. Also visit www.hud.gov/buying/ for more information.

Step 1. Figure Out How Much You Can Afford
Step 2. Know Your Rights
Step 3. Shop For A Loan
Step 4. Learn About Homebuying Programs
Step 5. Shop For A Home
Step 6. Make An Offer
Step 7. Get A Home Inspection
Step 8. Shop For Homeowners Insurance
Step 9. Sign Papers

SCAMS & FRAUD
Some Scams, Fraud, and Consumer Abuse Items in the News

Federal Laws
Major Laws That Govern Financial Institutions & Protect Individuals in Their Financial Dealings

Organizations

Consumer Info

Miscellaneous

Copyright &
Disclaimer Info
© Loanfactz.com
2004/2008