Your Legal Rights
March 3rd, 2009 | 
Author: What rights do I have as a consumer?
Disclosures: Disclosures are a combination of documents that are supposed to inform the client of the terms of the proposed loan. They include disclosing the interest rate, loan amount, broker fee and other fees (closing costs) associated with the loan. we send out a Good Faith Estimate, Application, Broker Fee Agreement, Truth in Lending, Equal Credit Opportunity Act Notice and other forms that are meant to show our client exactly what he or she will get at the closing. You have the right to receive these disclosures by law, and should look them over carefully to ensure that the information matches what was agreed upon.
*Keep in mind that just because you get a Good Faith Estimate that has a certain rate does not mean that you are guaranteed of receiving that rate. This is an Estimate and the broker sometimes uses this to entice the prospective client by making it seem like a promise. By law however, if the final interest rate or the loan amounts are higher then the estimate, a new Good Faith Estimate has to be signed by the client. However, brokers usually send the new estimate to be signed at the closing and back date it. In some clients minds, it’s too late to change there mind at this point and so they agree to the new terms anyway. We don’t mean to scare you into not trusting anybody. Just make sure that you read everything you sign regarding loan amounts and interest rates to make sure you get what you expect.
After Closing: Some people are not aware that there is something called a 3 day rescission period after the closing (for refinances). This means that you have 3 days after the closing to look over everything you signed and have the right to cancel the agreement if you choose to (within 3 days). Brokers don’t like to tell there clients this – especially the brokers that don’t deliver what they promise- because if you cancel, then the deal is dead and the broker does not get paid. The way we see it; if the broker does not deliver what was promised, he doesn’t deserve to get paid anyway. So don’t feel like you are trapped into a contract that you aren’t happy with after a closing, you do have the right to change your mind.
Posted in Your Legal Rights
April 3rd, 2009 5:08 am
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