In most cases, a mortgage comes with a repayment term of 30 years. Therefore, you could be spending much of your adult life making payments, which means that you need to protect your rights to ensure that your money isn’t wasted. What are some of the legal protections that you may need when applying for a mortgage?
Make Sure That Your Information Is Used for Approval Purposes Only
Any lender or broker that you submit an application through should tell you exactly how your information will be used. Professionals, like those at Assurance Financial Group, know that this is critical because you may have to reveal your social security number or provide an official copy of a tax return. Under normal circumstances, this is private or concealed information, and it could be used by criminals to commit identity theft or other forms of fraud if they gain access to it.
You May Want to Talk to an Attorney
Prior to submitting an application, you may want to talk with an attorney to ensure that your rights are being respected. In some cases, you may be required to use an attorney when closing on the home, so it may be a good idea to hire one from the very beginning of the home buying process.
Know What Type of Loan That You Are Applying For
Understanding the type of loan that you are applying for may make it easier to complete the process in a secure manner. For instance, a government loan may require that anyone providing a gift to cover down payment or other closing costs reveals their identity and relationship to you. Therefore, if you are applying for an FHA, VA or USDA loan, you will want assurances that their information will be kept confidential.
Check Your Credit Report
Checking your credit report prior to applying for a mortgage allows you to check for errors or other problems before asking for a loan. It also allows you to see if a lender that you applied for a loan with has used information in a credit report to commit fraud or otherwise violate the law.
Applying for a mortgage is a big step in your life. As there are many lenders and many types of loans, you need to shop around and ask questions to ensure that you get a loan that meets your needs and budget. If necessary, talk with a real estate agent or an attorney to determine if there are any legal issues that you need to be aware of.