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Learn Your Rights Before You Take Out A Housing Loan

May 22, 2012 | Comments: 0 | Views: 166

Because not all of us can afford to pay in cash for that new house, many of us would have to resort to borrowing money to buy a house. It is one important step in buying a home. Choosing the lender to approach for example could spell the difference between a good move and a sizeable failure. Aside from knowing what lender to borrow from, it is also important that the home buyer should also understand his or her rights. There are many shady lenders out there who will do whatever it takes to take advantage of people like you taking out a loan.

One of the first things that you have to understand is that you have the inherent right to shop for the best loan for you. Use it and compare the charges of different mortgage brokers and lenders. If you decide to stick with the first lender you contact, you may be putting yourself in a lot of financial risk.

Once you have decided where to take out that home loan, be aware of your right to be informed about the total cost of your loan. This should include interest rates, points, and other fees. Any hidden fee that would come back and haunt you in the long run especially fees that have not been made clear to you can be the result of a lender taking advantage of you.

You can also ask for a Good Faith Estimate of the loan and settlement. It is your right. This is vital before you agree to the loan and pay any fees. In case you may want to cancel the loan agreement, you have the right to know what fees are refundable and which are not. This way, you would be in the know as to how much you can get back from the paid fees in case you pull out of the transaction for any reason.

When dealing with a mortgage broker, it is your right to ask them to explain to you just what they will do for you. It is important because you would then have a good idea what you will be paying for. You also have the right to know how much the broker is being paid by you or and the lender.

When in doubt about the terms of the loan, make sure that you ask questions. It is your right to ask questions and have detailed answers until you understand the loan terms completely. This would allow you to avoid any problem that may arise from not fully understanding the terms of the loan before agreeing to it.

By knowing your rights and exercising them, you would have an easier time getting the right loan for your home buying needs.

Jason is a dedicated real estate agent in Minnesota. He aims to help home buyers find the best homes MN for sale by offering MLS MN on his site that offers the latest listings in Minnesota.

Source: EzineArticles
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