As a little girl, I remember playing in my little playhouse, pretending that it was a castle. Now that I’m all grown up with a kid, I have to admit that I haven’t totally outgrown the idea of being a princess living in the house of my dreams.
What I now realize is that achieving that dream isn’t so hard after all. All I need to do is apply for one of those fha home loans. If you’re a first time applicant for a home loan, it’s important to keep these things in mind:
The first thing to remember when diving in for a home loan, is that you should have a good credit history. Banks and other institutions will do credit checks, so be sure your credit card bills are paid on time.
Be sure to ask the loan officer about annual percentage rates, or APRs. The APR is the interest rate charged on the principal and added to the loan fees; the loan fees will then be translated into a rate to get the APR.
Try to calculate the total loan payments yourself. You have to know the exact amount you will be paying when your loan term ends. You also need to know the penalty you will be charged if you prepay the loan.
If it’s all Greek to you, don’t hesitate to ask the loan officer what you understand. He’ll be more than willing to answer all your questions. At the end of the day, it’s your money that’s involved, so it’s better to appear dumb than to cry buckets later on.