BUYER'S RIGHTS |
You have the right to buy any home you can afford in any neighborhood. The Fair Housing Act (Title VIII of the Civil Rights Act, 1988) makes it illegal to discriminate because of such factors as race, color, national origin, religion, sex, handicap or familial status (that is, whether you are pregnant or have children). In discussing fair housing, "discrimination" means unfairly denying someone the right to own or rent a house or apartment.
You also have a right to fair lending. No one can refuse to give you a loan for a house because of your race, color, national origin, religion, sex, familial status or handicap. A lender may offer a loan on less favorable terms or refuse to approve your loan application for other reasons, such as insufficient income, unacceptable credit history, or other factors that are not discriminatory.
It's also illegal for anyone to:
- Threaten, coerce, intimidate or interfere with anyone exercising a fair housing right
- Advertise or make statements that indicate a limitation or preference based on race, color, national origin, religion, sex, familial status or handicap.
If you think that any of your fair housing rights have been violated, discuss your concerns with the person or people involved. If you're not satisfied after discussing your complaints, contact the U.S. Department of Housing and Urban Development office closest to your home. 
When you apply for a mortgage loan, you have a right to know the true cost or annual percentage rate of your loan, as well as the costs of closing the loan. By law, you should receive the following information from your lender:
- A "Good Faith Estimate" of the settlement (or closing) costs of your loan. This is the lender's best estimate of the settlement costs, based on information available to the lender when you apply for the loan. If any of the costs are uncertain at that time, the lender will indicate which ones are estimates.
- The Annual Percentage Rate (APR) that you'll pay on the loan. The APR shows the costs of your mortgage loan as a yearly rate. This rate is usually higher than the rate stated in your mortgage or deed of trust note because the APR includes up-front fees (such as points) as well as interest. The APR is intended to show you the true cost of your loan. When comparing one loan to another, be sure to compare APRs to get a true picture of what each one will cost you.
- The finance charge (don't be surprised: the total 30-year finance charge will probably exceed the price of your house! By the time you finish paying the loan, the amount won't seem nearly so big.)
- Schedule of payments
- Late payment charges
- If you apply for an Adjustable Rate Mortgage (ARM) you will receive an additional disclosure explaining how and when the interest rate on your loan will change and a copy of the Consumer Handbook on Adjustable Rate Mortgages (CHARM) booklet. You should read this information carefully.