We sat with our loan officer for quite a while, asking questions about all three types of loans and making sure we clearly understood the advantages and disadvantages of each. That evening we did several more hours of research online. The next day the loan officer spent more time with us. She explained things like rate adjustment schedules, rate caps, how prepayment penalties operate and a whole lot more. What we also liked was the fact that our loan officer told us to take our time and didn’t pressure us to make a decision.

My wife and I applied and received approval for a nonprime hybrid loan—the loan that starts out with a fixed rate and then becomes an adjustable rate loan. We liked this option best because we knew exactly how much our monthly payment would be for the fixed term of three years. This allowed us to better budget our money and begin paying off our credit card balances. When the time comes for the loan to change into an adjustable rate, we’re hoping our credit score has improved and we’ll be able to refinance into a new loan with a lower interest rate.

All of this was two years ago. We’ve reduced quite a bit of our debt. My wife and I are expecting our first baby. And, we just completed work on solar panels that will heat our home and reduce our monthly utilities bill.

Justin’s story is not a real-life account and is provided for illustrative purposes only. We hope this scenario emphasizes how using the information available in the H.O.M.E curriculum will help to make you a more informed and educated consumer when it comes time to obtain your home loan. The lender you choose will be able to discuss your specific circumstances and provide you with more detailed information about the home loan options available to you.