Your Rights As a Borrower

When you shop for a mortgage loan, you have certain rights that are guaranteed by the federal government’s Consumer Financial Protection Bureau. Knowing your rights will help you get the best loan possible.

You have the right to:

1. Receive equal treatment by the lender, so that a credit decision isn’t based on your race, color, religion, national origin, sex, marital status, age, or whether any of your income is from public assistance.
2. Shop for the best loan type for you, whether adjustable or fixed rate, and compare the fees of different lenders.
3. Be informed about the total cost of your loan including the annual percentage rate (APR), points and other fees. Your interest rate is based on your credit history and credit scores, the borrowed amount and how much you’re putting as a down payment.
4. Receive a Loan Estimate and Closing Disclosure Form, formerly known as a Good Faith Estimate, before you agree to the loan and pay any fees. Compare the exact loan product you want as offered by two or more lenders.
5. Know which fees are not refundable if you decide to cancel the loan agreement, such as the fee to research your credit.
6. Ask questions about loan terms and fees that you don’t understand.
7. Know the reason if your loan was turned down.

Ask your lender to show you the advantages and disadvantages of each loan product so you can choose the best one to suit your needs. As always, consult your financial advisor before making any decision.

Looking for more information about buying a home? You may enjoy:

• Before Your Apply for a Mortgage
• The Real Reasons Why You Should Buy and Not Rent
• Some Definitions of Listing Statuses