Mortgage Borrower's Rights You Must Know
Loan Agreements are usually thick documents filled with arcane language and miles of fine print. And that's not taking into consideration that this may be the biggest I.O.U. that you'll ever put your signature to. This is why it's all the more important to know what your rights are as a borrower – and you do have them!
You can choose the best loan available to you. That means shopping around for the best lending institution is perfectly legal, as is inquiring what the interest rates, other costs, fees, and expenses are. You are handing over your asset and money to these institutions, so you must be able to make the right decision for yourself.
You are entitled to see an estimate of the loan and settlement charges. Asking for this does not mean that you must get the loan from that specific lending institution. You can even request it be prepared before any fees are paid and you agree to get the loan. They must also inform you which fees are not refundable if the loan agreement is canceled.
You also must know what the mortgage broker should be doing for you – and how much they will make for doing it. Mortgage brokers make money from two people: you and the lender, so you should know how much you are paying him. They must also answer, in clear language, any questions you might have regarding terms, charges, and anything you don't understand in the agreement.
If by any chance your mortgage application was turned down, the lending institution and the mortgage broker must inform you, in clear terms, why you were denied a loan. This reason must not have anything to do with your gender, color, race, country of origin, age, marital status, sexual preference, existing disabilities, or if you are receiving public assistance. This is known as housing discrimination and is illegal.