If you are in the process of taking out a mortgage to purchase your home or refinancing your existing mortgage it is important to understand you rights under the Real Estate Settlement and Procedures Act (RESPA). Here are the basics of the protection RESPA provides homeowners to help you avoid predatory lenders that want to take advantage of you.

The Real Estate Settlement and Procedures Act protects homeowners in the United States from unfair lending practices. RESPA outlines rules for disclosure mortgage lenders are required to follow. Under RESPA you have the following rights:

• You have the right to disclosure about the fees and total cost of your loan, including the interest rate, lender fees, points, and closing costs.

• You have the right to request the lender’s Good Faith Estimate outlining all mortgage fees and settlement charges before agreeing to pay the fees.

• You have the right to know which application and lender fees are not refundable if you decide to cancel your loan application.

• If you are working with a Mortgage Broker you have the right to know exactly what the broker will do for you and how the Mortgage Broker will be compensated for their services.

• You have the right to ask questions about any fees or terms you do not understand on your loan contact or supporting documentation.

• You are protected against lending discrimination based on your race, color religion, sex, marital status, age, national origin, or if you receive income assistance from public funds.

• You have the right to know why your mortgage application is declined and to receive the HUD settlement booklet entitled “Buying Your Home.”

You can learn more about your mortgage options, including common mistakes to avoid by registering for a free mortgage guidebook.