When you shop for a mortgage loan, you have certain rights that are guaranteed by the federal government’s Consumer Financial Protection Bureau.
These include the right to:
- Receive a credit decision that isn’t based on your race, color, religion, national origin, sex, marital status, age, or whether any of your income is from public assistance.
- Shop for the best loan type for you and compare the fees of different lenders.
- Know the total cost of your loan including the annual percentage rate (APR), points and other fees. Interest rates vary according to your credit history and credit scores, the borrowed amount and how much you’re putting as a down payment.
- Receive a Loan Estimate and Closing Disclosure Form before you agree to the loan and pay any fees. Compare the exact loan product you want as offered by two or more lenders.
- Know which fees are not refundable if you decide to cancel the loan agreement.
- Ask questions about loan terms and fees that you don’t understand.
- Know the reason if your loan was turned down.
Learn the advantages and disadvantages of each type of loan product to choose the best one for your needs. As always, consult your financial advisor before making any decision.