If you’re shopping around for a mortgage to buy a home, the federal government wants you know that you have rights.
This might 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, according to the U.S. Department of Housing and Urban Development Web site,
www.hud.gov.
You have the right to:
Shop for the best loan for you and compare the charges of different mortgage brokers and lenders.
Be informed about the total cost of your loan including the interest rate, points and other fees.
Ask for a good faith estimate of all loan and settlement charges before you agree to the loan and pay any fees.
Know what fees are not refundable if you decide to cancel the loan agreement.
Ask your mortgage broker to explain exactly what the mortgage broker will do for you.
Know how much the mortgage broker is getting paid by you and the lender for your loan.
Ask questions about charges and loan terms you do not understand.
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
Know the reason if your loan was turned down.
Ask for the HUD settlement costs booklet “Buying Your Home.”
For more information contact HUD - Phone (800) 569-4287 or www.hud.gov
You have the responsabilty to:
Be honest in answering all the questions the Loan Officer will ask you to prepare your application and also provide 'bona fide' documents to support your statements if requested.
You must know that Mortgage fraud means a material misstatement, misrepresentation, or omission to fund or purchase - or not to fund or purchase - a mortgage. Although loan fraud may be perpetrated in many forms, some of the most common like submission of inaccurate or misleading information, including false statements on loan application and falsification of documents purporting to substantiate credit, employment, deposit and asset information or personal information including identity, ownership/non-ownership of the real property; Inaccurate representations of current occupancy or intent to maintain required occupancy as agreed in the security instrument.
You have to be aware of the consequences For Borrowers of above mentioned acts:
Acceleration of debt as authorized by the security instrument (Deed of Trust / Mortgage).
Criminal prosecution, which may result in possible fines, imprisonment or both.
Civil action by MortgageZoom.com for damages.
Civil action by other parties to the transaction such as seller or real estate agent/broker.
Forfeiture of any professional license.
Long term adverse effect on credit history.
