Indiana Homebuyer rights and responsibility

So...with the new $8,000 tax credit you now want to buy your first home. Did you know you might can use the $8,000 before you file for taxes? There is a catch and here is where you can find out.

As buyer you have rights as well as responsibilities before you even become a homeowner. HUD has put together a very nice brochure called BUYING A HOME that explains the settlement costs and gives you other helpful information about buying a home. With the BUYING A HOME brochure it give you also a line by line explanation on how to read a HUD-1 or the Final Settlement Statement.

When you apply for a loan, you might hear the word RESPA.

RESPA is the Real Estate Settlement Procedures Act. It is as well called truth in lending, and mortgage reform that will help consumers to shop for the lowest cost mortgage and avoid costly and potentially harmful loan offers. The mortgage lender or broker needs to give you, as a buyer a GFE (good faith estimate)that has to be in writing and has to be delivered to you with in three business days after you made the loan application.

Each State has different rules and laws that govern the home buying process and to understand the buying process a little bit better, familiarize yourself with a purchase agreement as soon as you can. Ask your REALTOR to give you a copy of the agreement, so that you can read and ask about the fine print before you sign the dotted line.

Besides the purchase agreement, you have to fill out or look at other information that is part of buying a home and it varies from State to State. Some examples are Sellers Disclosure, and lead base paint disclosure for home build before 1978.

For more information about buying your first home, give us a call.

Bettina Settles

Written by Bettina Settles 06/01/2009 ©