Buyers Rights

This may be the largest and most important loan you get during your lifetime. 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 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 lender to explain exactly what the mortgage lender will do for you.
• You have the RIGHT to know how much the mortgage lender is getting paid by you 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."

What to Avoid When Applying for a Home Loan

While you’re looking for home financing, you may be tempted to take certain actions that seem harmless enough—but which may adversely affect the loan approval process. In particular, we recommend that you:

• Don’t change jobs. Any required probation period would have to be completed before income from the new job would be considered for loan qualifying.

• Don’t buy or lease a motor vehicle. A large payment of this type can adversely affect your debt-to-income ratio—and possibly prevent you from qualifying for a home loan.

• Don’t buy expensive new furniture or major appliances on credit for your hoped-for home. Such purchases will significantly increase your monthly obligations, possibly to the point that you won’t quality for a loan or have enough funds on hand to meet closing costs.

• Don’t try to consolidate bills without informing your lender first. Your Loan Officer may tell you that this step isn’t necessary to qualify for your loan.

• Don’t move assets from one bank account to another. Such transfers show up as new accounts for which you’ll have to disclose and document the source, complicating the application process.

• Don’t pack or ship information you’ll need for the loan application. You’ll need to have important papers (W-2 forms, tax returns, etc.) on hand at all times. If they aren’t available and you must obtain duplicates, the wait could stall the closing date on your transaction.

This is for informational purposes only