Your Rights As A Santa Cruz Real Estate Buyer

When you buy Santa Cruz real estate, you need to be aware of your rights.  Not everything is as cut and dry as some may want you to think.  The following is a list of many of those rights:

• Nondiscrimination – In this case, discrimination means being denied unfairly.  If you can afford a home, you have the right to buy it no matter what neighborhood it's in.  The Fair Housing Act makes it illegal to discriminate because of race, handicap, whether you have children or not, and many other issues.

• Fair lending – This goes hand in hand with nondiscrimination.  To be denied a loan, there has to be a fair reason, such as insufficient income or an unacceptable credit history.

• Forceful measures - You can't be threatened, coerced or intimidated into not buying Santa Cruz real estate.

• Good Faith Estimate – Thanks to RESPA (the Real Estate Settlement Procedures Act of 1974), you can ask a lender to give you a "Good Faith Estimate."  A Good Faith Estimate is the lender's best estimate of settlement costs. 

• Hidden fees – Sometimes lenders have fees that aren't refundable to you if you cancel a loan agreement.  If this is the case, the lender has to let you know what fees won't be refunded.

• Annual Percentage Rate (APR) – This is the yearly costs of your loan.  It includes up-front fees and interest, as well as finance charges, payment schedules and late payment charges.  Your lender must provide you with a Truth In Lending Statement that shows you a list of items that have been added to your APR.

• Inspection report – You have the right to have a home inspector visit the property to identify any major problems.  Based on this report, you can get out of the sales contract if any serious problems are identified.  Or, you can adjust your bid to compensate for the problems.  If you sign the contract before getting the property inspected, make sure it's worded so you can leave the deal if any major problems are found.
 
Buying Santa Cruz real estate can be exciting, and you may be tempted to scan over the paperwork.  Read everything before signing, and know your buyer rights!

If you're considering a Santa Cruz real estate purchase, talk with me.  I can make the purchase process easy and safe.  Call me today at 831.662.6522 or email me at lauren@laurenspencer.com

LINKS:

Fair Housing Act

RESPA

APR