Featured News 2013 Borrower’s Rights in Mortgage Agreements

Borrower’s Rights in Mortgage Agreements

Purchasing a home is a big commitment, and securing a mortgage is no small matter. Most of the time, homebuyers who agree to a mortgage are making a commitment to payments that will last decades. As a borrower, you have certain rights that you can enforce in the event that you think you are getting taken advantage of or are not being treated fairly. A home mortgage is the most important loan you will probably receive in your lifetime, so you want to make sure that you have the time and the finances to pay it off.

When you are going through the process of securing a mortgage, it is wise to do this slowly. You will want to pour over contracts and get a real estate lawyer involved to make sure that you are not going to be cheated by hidden fees and fines from the bank or lender. You will want to understand exactly what you are agreeing to when you sign the documents and will want to be fully informed about your rights as a borrower. You may not be able to navigate through all the legal jargon and complicated sentences on your own, so make sure to find a real estate lawyer who can help you.

As a borrower, you automatically have the right to shop for the best loan for you. A lender that proved to be helpful for your friend may not be the best choice for you given the home that you are purchasing and your current financial situation. Make sure to consult with an attorney when you are shopping for different lenders and make an informed decision before agreeing to work with one particular organization. You will want to compare the charges of different mortgage brokers and lenders or have an attorney run the numbers for you and show you which lender will give you the best deal.

You also have the right to be informed about the total cost of your loan. Before you agree to a loan you should know the interest rate, the points, and all other fines and fees. You should not be blind sighted later by fees that you were never told about or informed that your interest rate has gone up for no reason. All fines, fees and relative costs should be listed in the lending agreement. If you are cheated by a lender, then you have the right to get a lawyer involved and argue for a fair rate or fair charges.

As a borrower you also have the right to ask for a Good Faith Estimate of all loan and settlement charges. The lender is required to furnish this request before you agree to the loan or pay any fees associated with it. This way, you will be fully aware of the costs that you will be committing to and can compare the expenses with your income to learn if you can manage the payments. You will want to carefully evaluate your ability to cover the costs, as a lack of finances later on could lead to foreclosure if you are not careful.

You also have the right to know which fees are not refundable. If you decide to cancel the loan agreement because you choose not to move or decide that you want to use another lender, some of the fees that you have already paid may be nonrefundable. You should be warned of this ahead of time, so that you can be sure that you are making a wise decision when you first commit to the lender. If you are not approved for a loan, then you have the right to request details about why your loan was turned down. If the lender or broker will not inform you of this, then you can get a lawyer involved. Talk to a real estate attorney today if you want a professional on your side to safeguard you from error as you shop for a beneficial loan.

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