Knowledge is Power
Before signing an agreement of sale, be sure that there is a home inspection contingency in the contract. Then, hire a reputable home inspector to inspect the property that is being considered and review the inspection report carefully for any potential issues that may need to be addressed. In addition, a copy of a home inspection report is required for all PHOS programs.
Good Faith Estimate
The Good Faith Estimate (GFE) is a document that all mortgage lenders are required to provide to the borrower within three days of application. This document provides a break down of all fees associated with the loan and can be used to compare loans offered by different lenders.
Truth in Lending
The Truth in Lending (TIL) is another document that all mortgage lenders are required to provide to the borrower within three days of application. The TIL provides information on interest, late fees, monthly payment amounts and any prepayment provisions and can be used to compare loans offered by different lenders.
Equal Credit Opportunity Act
The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, the fact that all or part of the applicant's income comes from any public assistance program, or the fact that the applicant has exercised any right under any federal consumer credit protection law.
Fair Housing Act
The Fair Housing Act (FHA) prohibits discrimination in residential real estate transactions on the basis of race, color, religion, sex, handicap, familial status or national origin.
Compare multiple properties and lenders before making a final decision.