Three Reasons to Take Homebuyer Education

While the economy and the housing market has taken a turn for the worse over the last few years, it is still possible to buy a home and actually get a good deal. For those people who are interested in exploring the options available – especially those who are considering home ownership for the first time – look into attending an approved home buyer education program. These classes are generally 8 hours long and are approved by the US Department of Housing and Urban Development. This assures you that the information you are receiving is of quality standards and will provide you with the information you need to make an informed decision.

Prepare You For Home Ownership

For many people buying a home is a very confusing process. There are so many tips and tricks and sometimes it all seems like a maze destined to confuse even the smartest of people. That’s where a HUD approved Housing Counseling Agency can come in very handy. They have the tools to teach you all about the process. They can answer your questions and have qualified housing counselors on staff to help you through the process. Each 8 hour class breaks down the entire home buying process. They have helped dozens and dozens of people just like you navigate their way through the system and can help you with looking at lenders to shopping for a home to what happens after you buy the house. Don’t be afraid to ask questions. They are there to provide you with all the answers you seek.

Mortgage Loan Information

Mortgage loan information is a language all to itself. Home buyer education will help set the foundation for you to build your lending knowledge on. Not all lenders are created equally. Some are, unfortunately, down right crooks. Home buyer education will give you the tools to be able to recognize the good guys from the bad guys. Your class will cover principal and interest and pre-qualification to loan closing. Here you will be tempted to ask a lot of questions; do so. This is the environment to let your guard down and ask all those questions. Inside the office of one of the bad guy lenders is not the place to admit that you don’t know anything about the mortgage loan process. Trust me, you will get taken advantage of then.

Many cities and towns have agreements with their local HUD approved housing counseling agencies to provide home buyer education. For those people who are income qualified, attending this class may be the ticket to down payment assistance from the City. These funds- typically anywhere from $3,000 to $5,000 – can be used to pay closing costs. This is definitely worth the nominal cost to attend the education class.

Budgeting

Home ownership is a life long process. It doesn’t stop when the closing attorney hands you the keys to the house. In your home buyer education class you will learn how to budget for home ownership. You will learn about emergency funds to help with items around the house. You will learn how to plan for a monthly mortgage payment that will generally include escrowed property taxes and sometimes mortgage insurance. Take this opportunity to learn the skills that will help you in so many different areas of your life outside of home ownership. Budgeting can allow you to experience a bit of freedom because you are telling your money where to go and not spending it all and wondering where it went.

Terry Ford is one thrifty diva! She is a busy freelancer who writes about personal finance and a wide range of other topics. She makes sure she doesn’t waste words with the help of a great grammar checker.

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