Washington consumers now have a new tool to help guide them through the home loan process. The Washington State Department of Financial Institutions (DFI) announced that an interactive CD-ROM entitled, “DFI’s Guide to Home Loans,” is now available.

“Consumers need to understand what they are getting into before signing their name on the dotted line,” said Scott Kinney, Director of Communications. “The CD answers many of the common questions that come up during the home loan process. The information will be helpful to consumers who are buying a new home, refinancing, or considering a second mortgage.”

The CD covers topics such as: the basic steps to securing a home loan; an explanation of disclosure documents; tips on avoiding predatory loans; reverse mortgages; and a glossary of common mortgage terms. Consumers will also find checklists and samples of various forms, in addition to mortgage calculators and web links to helpful resources.

DFI enhanced its outreach efforts after conducting a study to measure the financial literacy of Washington consumers and how best to reach them with financial education. The research indicated that consumers seek web-based educational materials from an objective or neutral resource. In response, the Department launched a new website and worked to develop the CD-ROM - one of the first projects of its kind to be created by a state financial regulator. Much of the funding for the outreach program was made possible through DFI’s settlement of a large predatory lending case in 2002.

Consumers can order “DFI’s Guide to Home Loans” by calling, (877) 746-4334, or by visiting DFI’s website www.dfi.wa.gov.