Should you choose a fixed-rate or adjustable-rate mortgage? How do you save for a down payment? What happens at closing? The homebuying process can be downright intimidating, and many potential buyers don’t know there’s help out there. Homebuyer education programs shed some light on the entirety of the homebuying process and, while sitting in a classroom after a long, hard day may not sound entirely appealing, it may be the most important class you ever take.
What is homebuyer education?
Homebuyer education classes help prepare you for one of the biggest financial investments of your life. Many states, local governments and nonprofits offer homebuyer education courses, approved by The U.S. Department of Housing and Urban Development (HUD), for potential buyers. The educational workshops are designed to help you navigate each step of the homebuying process including; homebuying readiness, budgeting, credit and preapproval. Classes can be taken in person or online, and are often free or low-cost.
Why is homebuyer education important?
The homebuying process can be intimidating. Between an array of acronyms and a 30-year commitment, a little background knowledge can go a long way. Successful completion of a homebuyer education program may also be required of you or, at the very least, could strengthen your mortgage application. If you already know which mortgage professional you’d prefer to use, give them a call and ask how homebuying education may be a helpful factor in the approval process. They may recommend certain programs and can provide details on how courses are evaluated.
Which program is right for me?
The right homebuyer education program depends entirely on your location, budget and loan type. The HUD provides a list of approved agencies offering diverse homebuyer education programs across the nation. The Department of Veterans Affairs (VA) and the Department of Agriculture (USDA) also offer state and local options for their respective borrowers. If applying for a Fannie Mae or Freddie Mac loan, investigate their range of offerings as well. Between online options and free courses, there’s something for everyone!
Bottom line
A homebuyer education program isn’t just another application requirement to check off the list. It’s an opportunity to make an informed decision on one of the largest financial investments of your life! When it comes to big-ticket purchases like a brand new home, it never hurts to hit the books.
Published on November 5, 2019
