Why You Should Take a Course for First Time Home Buyers
It’s fun to browse internet home lists or watch shows like House Hunters . But if you are not a homeowner, you may not know how to start acquiring your piece of the American Dream.
In addition to TV shows, which rarely discuss the many nuances of having to spend several hundred thousand dollars on housing, there is a ton of conflicting information about buying a home. Family and friends are often happy to share their experiences, but I would venture to suggest that the people who are most willing to give advice are people who haven’t actually made a home purchase lately. In the real estate market, a lot can change in just a few years, and while you love Aunt Katy, you will probably like the other point of view.
Who should take home buying classes?
This is where a homebuyer training course can come in handy. I know that not everyone is seizing the opportunity to sit down in class after a long day of adult responsibilities. But this is a chance to get objective information on what you can expect from the home buying process, and your chance to finally figure out what escrow is, once and for all.
In addition, these courses are often a prerequisite for entry-level homebuyer programs that can make home ownership more financially beneficial.
Before signing up, here’s what you need to know. Just think: you could prepare to buy a home and be able to dominate the comments on the couch during the next HGTV marathon.
Where to find a good
To find a local agency that provides training courses for home buyers, visit the directory of approved housing counseling agencies, the Department of Housing and Urban Development United States . You can get results for your state and narrow the list by listing your city or zip code on the results page. In addition to training courses for home buyers, you will be able to see which agencies offer other housing resources, such as pre-purchase advice.
Another place to find local workshops is at National Industry Standards for Homeowner Education and Consulting . The agencies listed in his directory are HUD compliant and have adopted a number of basic standards for this type of counseling and training.
Attending a HUD-certified course is essential because it is often required for buyer assistance programs such as down payment assistance or preferred mortgage rates. You will need to provide documentation of the successful completion of the course, such as a certificate. Some programs require you to have attended such classes within the past one or two years.
You can also find tutorials online. One Lifehacker reader recommended Framework, an online course that follows HUD guidelines. An online course may suit you better if you have a busy schedule or prefer to work at your own pace.
Whether you are attending in person or online, you can expect the course to take anywhere from four to eight hours. If you are taking an online course, you may need to complete it within a certain period of time, such as 30 days.
How much is it
The cost of the course may vary depending on who is delivering it. In general, expect to pay at least $ 75. But feel free to shop among the options in your area and online. For example, one online course offered through the Northeast Michigan Public Service Agency allows you to register online for $ 99, but offers a discount to people who contact them before doing so.
If you are planning to buy a home with a partner, you may both need to take a home buyer education course. Check with local housing organizations about their requirements for couples to attend courses and whether each person must pay the full cost of the course.
Don’t force yourself to attend the first course you come across in your search. You can compare stores to find the class that suits you in terms of time, cost, and curriculum.
What are you learning
Here’s a rundown of the topics you can expect to learn about, according to the National Industry Standards for Home Ownership and Consulting:
- Home ownership basics such as the pros and cons of home ownership and the steps in the home buying process.
- Budgeting and financial matters required for home ownership, such as determining your budget for your home and making sure your loan is sound before applying for a mortgage.
- Home financing , from mortgage loan requirements to mortgage types, standard loan documents, and the closing process. (Psst: This is the part about escrow!)
- Buying a home , knowing who you need to work with and how to negotiate a price.
- Home care , including the cost of owning the home in excess of the purchase price. You will also learn about the risks of predatory lending and how to avoid foreclosures if you run into financial difficulties.
These things may sound darn boring on paper, but they take away some of the momentary anxiety you may experience when you hear terms like ” mortgage scores ” and ” PMI “.
It also gives you an edge when talking to professionals such as real estate agents or lenders. The more knowledge you gain before you start looking for a home, the more confident you will be to walk away from someone who is overly assertive or otherwise makes you nervous.
What happens next
It’s up to you what to do when you complete your homebuyer training course. You can immediately start meeting the requirements for applying for first-time homebuyer programs in your area, or you can abandon your home buying plans. You can leave class realizing that you don’t want to have a home at all. Either way, you will be armed with information to help you make a decision. And you will know exactly what “escrow” is.