|
Real Estate Settlement Procedures Act (RESPA) The Real Estate Settlement Procedures
Act (RESPA) was enacted to protect consumers when they buy houses,
and to help them be better shoppers for settlement services. RESPA
requires lenders to give you estimates so that you can compare loans
and services. It also mandates that lenders make certain disclosures
(e.g., typical costs, affiliations). When you apply for a loan, the
lender is required to give you a Good Faith Estimate of loan-related
expenses that you'll be required to pay at closing. The estimate
must be given to you or mailed to you within three days of your
application. The lender does not need to provide this information if
your application is turned down during the three-day period. Make
sure you understand all of the figures on the settlement estimate
and on the final settlement statement at closing. If you do not
understand specific fees or costs, insist on an explanation. |
|
|