When you apply for a mortgage, you, the borrower, have several rights that you need to be aware of.
The Federal Law protects you from being discriminated against when you apply for a mortgage to purchase, refinance, or take out a line of credit.You have the right to recieve a copy of the appraisal inspection. A full color original copy of the appraisal inspection must be given to you at request, if you are considering buying a home or refinancing an existing mortgage loan, and the appraisal related to the transaction has already been performed.
Many of the disclosures that must be presented to you and signed explain the details of how you are protected and what the terms are. Always make sure to get signed copies of all documentation that is presented to you.
You have the right to receive a copy of your Good Faith Estimate, GFE, within 3 days of applying for a home mortgage loan. Make sure you receive a copy of this but review it in detail and ask questions about anything that you are unsure of. Your good faith estimate will be an estimate of all fees involved with your mortgage loan application and transaction.
The Federal Equal Credit Opportunity Act (ECOA) entitles a mortgage applicant to fair credit practices. This law prohibits banks from discriminating against loan applicants on the basis of race, color, sex, religious believes, age, and marital status. The Federal Trade Commission oversees the enforcement of this Act.
You also have the right to choose your own insurance. While you are required to have Home owners insurance as long as you have a mortgage, you can choose any agent/company you want to provide that insurance.
Also, a borrower has the right, within 3 days (excluding Sundays and federal holidays) from the date he/she signs the closing documents, to rescind a loan.
If you were charged a credit reporting fee on your GFE by the lender you have a right to a copy of the credit report that was pulled by the lender.
You as the borrower have the right to select an escrow or closing agent who will be used when signing your final loan paperwork.
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