If you are purchasing a home, you will always receive a HUD Special Info Booklet. This booklet this booklet describes important terms and provides you with a step by step guide about the home buying process. It is highly advised that you read the booklet in its entirety.
If you are thinking about refinancing, reverse mortgages, or open-end home equity lines of credit, you might also request or receive the Federal Reserve Board Consumer Handbook, which explains the advantages and disadvantages of open credit lines.
The lender or broker must give you this booklet when you first apply for the loan or within three business days.
The booklet will contain the specific laws of the state where the purchase is to be made, but in general the booklet will:
- Describe and explanation of the nature and purpose of each cost
- Explain and sample of standard real estate forms
- Describe and explanation of the nature and purpose of escrow accounts
- Explain of the ohoices available in terms of real estate services
- Explain of the unfair practices and unreasonable charges to be avoided
This information is all very relevant and very important to know before securing a loan to purchase a home. Abuses by real estate brokers and lenders are not new or unique, so be sure to keep yourself informed about how the process should work. Consult an attorney immediately if a broker or lender asks for anything unusual.
It is advised that you read the booklet before asking any questions because most major issues are answered. If you have any further questions or would like some advice about how to proceed, talk to an experienced real estate attorney.