uying a home can be a
complicated and confusing RESPA sets procedures and
process. It's also probably requirements relating to the
the biggest investment you'll closing or settlement process
ever make. (when home ownership is
transferred from the seller to
These two factors combined add up the buyer).
to this -– you need to be well
informed about your home buying Settlement is a paperwork-intense
rights. process where the home buyer
officially assumes the mortgage.
Here's the most valuable home It's an important part of the
buying tip you'll ever receive: process, and as a result it is
Learn about RESPA. More clearly defined by the government
specifically, learn about your (under the RESPA act).
rights under RESPA.
Again, the Department of Housing
What is RESPA? and Urban Development: "RESPA
requires that borrowers receive
RESPA is the Real Estate disclosures at various times.
Settlement Procedures Act Some disclosures spell out the
(RESPA). Here's how the costs associated with the
Department of Housing and Urban settlement..."
Development defines it: RESPA was
"enacted in 1974 to provide Your Rights Under RESPA
consumers advance disclosures of
settlement charges and to To understand RESPA is to
prohibit illegal kickbacks and understand your rights as a home
excessive fees in the home buying buyer, so it's vital that you do
process." some reading. Start with HUD's
website and read up on RESPA, * You have the right to ask
particularly the part that questions about fees and
explains your rights under the terminology you don't understand.
act.
A Summary of Your Rights: * You have the right to know why
your loan was denied (if such an
* You have the right to shop even occurs).
around for loans and compare the
fees and charges of various Most importantly, you have the
mortgage lenders. right to learn more, by visiting
one of the websites below:
* You have the right to be
informed about the total cost of * www.HomeBuyingInstitute.com
your loan (to include all * www.HUD.gov
associated fees, interest rates, * www.RespaReform.com
and other add-ons).
The best home buying tip you'll
* You have the right to receive a ever receive: Know your rights
Good Faith Estimate of all loan under RESPA. Be a well informed
and settlement charges before borrower and home buyer.
settlement day.
++ Copyright 2006, Brandon
* You have the right to ask the Cornett. You may republish this
mortgage lender to explain every article if you keep the byline
aspect of the mortgage, line by and author's note, and also leave
line if necessary. the hyperlinks active.
About the Author:
To learn more about the home buying process visit http://HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Visit: http://www.homebuyinginstitute.com today!
Read more articles by:
Brandon Cornett
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