When buying a home it is important to be aware of one's rights, as it is a sad fact that there have been quite a number of fraudulent cases reported in the industry. The government has laws aimed to protect home purchasers from such deceitful and corrupt activity. You are granted rights, even as you are still applying and searching for mortgage loans. There are also rights and responsibilities that vary depending on your state, but having awareness will definitely make you more secure and ready to buy your new home.

The rights are divided into two: the Right of the Borrower, which is guided by the Fair Housing Act (Title VIII of the Civil Rights Act, 1988), and the Consumer Credit Protection Act. These two legislations have been approved by the United States Congress.
As a Home Buyer and Consumer, you are protected and have the right to:
1. Purchase any home you have the funds for in any locality.
ñ Discrimination due to such factors, as color, religion, national origin, sex, familial status. You are protected from discrimination, especially pertaining to having children or any sort of handicap or disability.
2. Fair Lending.
A person or company cannot refuse to approve or give you a loan for a house unless for the following reasons: poor credit history, inadequate income, and other aspects that are not prejudicial or biased. And if the loan is turned down, the lender must inform the person who applied for the loan the reason why the loan was denied and provide ample proof and documentation, such as pay slips, credit reports, and more.
Qualifications for loan consideration also include pension, alimony, and income from child support.
3. Compare and choose among mortgage brokers and lenders that have the best loan rates and ask questions about loan charges and terms that are not understood. Strive to have transparency of home appraisal reports and fees involved.
This is stated in the Real Estate Settlement Procedures Acts (RESPA), which is administered, by the Department of Housing and Development. A ìGood Faith Estimateî or GFE of the closing or settlement of costs of your loan should be provided by the lender. This would refer to being informed of the total cost of the loan, such as the points, interest rates, and assessed fees of the broker and lender, as well as any fees that are not refundable, should one decide to make a cancellation of the loan contract. Other information, like The Annual Percentage Rate (APR), payment schedules, finance charges, and late payment charges should also be given out to you.

4. Receive the Special Information Booklet.
This is a document that contains facts on settlement services on real estate to be given to the homebuyer within 3 days upon receipt of application.