HUD Settlement Cost Booklet

HUD Settlement Cost Booklet

and

Consumer Handbook on Adjustable-Rate Mortgages (CHARM)

DISCLOSURE

HUD Settlement Cost Booklet

The Real Estate Settlement Procedures Act (RESPA) requires lenders and mortgage brokers to give you this booklet within three days of applying for a mortgage loan. RESPA is a federal law that helps protect consumers from unfair practices by settlement service providers during the home-buying and loan process.

Buying a home is an important financial decision that should be considered carefully. This booklet will help you become familiar with the various stages of the home-buying process, including deciding whether you are ready to buy a home, and providing factors to consider in determining how much you can afford to spend. You will learn about the sales agreement, how to use a Good Faith Estimate to shop for the best loan for you, required settlement services to close your loan, and the HUD-1 Settlement Statement that you will receive at closing.

This booklet will help you become familiar with how interest rates, points, balloon payments, and prepayment penalties can affect your monthly mortgage payments. In addition, there is important information about your loan after settlement, including how to resolve loan servicing problems with your lender, and steps you can take to avoid foreclosure. After you have purchased your home, this booklet will help you identify issues to consider before getting a home equity loan or refinancing your mortgage. Finally, contact information is provided to answer any questions you may have after reading this booklet. There is also a Glossary of Terms in the booklet’s Appendix.

Using this booklet as your guide will help you avoid the pitfalls and help you achieve the joys of home ownership.

Consumer Handbook on Adjustable-Rate Mortgages (CHARM)

This information was prepared by the Board of Governors of the Federal Reserve System and the Office of Thrift Supervision in consultation with various organizations. This handbook gives you an overview of ARMs, explains how ARMs work, and discusses some of the issues that you might face as a borrower.

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I/We have applied for a mortgage loan. As part of the application process, I/We have been informed of the HUD's Settlement Cost Booklet as mentioned above and have been provided with instructions on how to obtain this document through the MNS website and direct link.

MNS Website for HUD Settlement Cost Booklet

Link:

Click on Website Links

Under Agencies Websites the HUD Settlement Cost Booklet is listed 5th on the list. You can print a .pdf document or click on link to go directly to the HUD website.

DIRECT LINK for HUD Settlement Cost Booklet (.pdf and word format and Spanish Version)

By signing below I/We accept responsibility for viewing and/or printing this document within 3 days of applying for a mortgage loan. I also accept responsibility for requesting a hard copy of this booklet to my Loan Originator should this document not be available through the above listed instructions. I/We agree to request this in writing within the 3 day period of applying for our mortgage loan.

Borrower’s Signature ______Date ______

Co-Borrower’s Signature ______Date ______

______

I/We have applied for a Adjustable-Rate Mortgage. As part of the application process, I/We have been informed of the Consumer Handbook on Adjustable-Rate Mortgages as mentioned above and have been provided with instructions on how to obtain this document through the MNS website and direct link.

MNS Website for CHARM Booklet

Link:

Click on Website Links

Under Agencies Websites the HUD Settlement Cost Booklet is listed 6th on the list. You can print a .pdf document or click on link to go directly to a on-line document.

DIRECT LINK for CHARM Handbook (.pdf format)

Borrower’s Signature ______Date ______

Co-Borrower’s Signature ______Date ______

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