I. Introduction
CONGRATULATIONS!
You have decided to buy
a new home. This booklet
will help you take this
big financial step by
describing the home
buying, home financing,
and settlement process.
Lenders and mortgage
brokers are required by
federal law, the Real
Estate Settlement
Procedures Act
("RESPA"), to give you
this booklet. You should
receive it when applying
for a loan, or within
three business days
afterwards. Real estate
brokers frequently hand
out this booklet as
well.
You probably started the
home buying process in
one of two ways: you saw
a home you were
interested in buying or
you consulted a lender
to figure out how much
money you could borrow
before you found a home
(sometimes called
pre-qualifying). The
next step is to sign an
agreement of sale with
the seller, followed by
applying for a loan to
purchase your new home.
The final step is called
"settlement" or
"closing," where the
legal title to the
property is transferred
to you.
At each of these steps
you often have the
opportunity to negotiate
the terms, conditions
and costs to your
advantage. This booklet
will highlight such
opportunities. You will
also need to shop
carefully to get the
best value for your
money. There is no
standard home buying
process used in all
localities. Your actual
experience may vary from
those described here.
This booklet takes you
through the general
steps to buying a home,
to eliminate, as much as
possible, the mysteries
of the settlement
process. |
Equal Housing Opportunity