Home Buyer Education Creates Successful Homeowners

I remember buying my first house.  My parents co-signed for my mortgage as non-occupant borrowers on a FHA loan.  They also lent me money every now and then to cover what I needed to make my mortgage payment if I came up a little short at the end of a month.   At the time, it drove me crazy how important that “on time” mortgage payment was to them, and it seemed like nagging to a SWF who’s biggest concern was who I was dating or where the next party was. 

The scary part is about this true story is the lack of financial maturity I possessed;  and about that time I was receiving my five year service award having been employed in the mortgage industry for a local bank.   

How different things would have been if I had attended a Homeownership Education class.  I am a big fan now that several of my clients have attended one as a requirement of a down payment assistance program.  Homebuyer Education classes prepare new buyers for homeownership and help you understand how real estate ownership changes your life.  Even if you are already used to making rent payments on an apartment or house, owning real estate has a whole new set of responsibilities.  My clients that are truly ready for homeownership come out of these classes with an increased confidence level, and are fired up about looking for homes.   Education is empowering.

A Homebuyer Education class will prepare you for homeownership by helping you:

• Determine how much house you can afford. These classes offer one-on one budget counseling and spending plans.  You will learn to identify wasteful spending and how to develop a savings plan for unexpected expenses.
• Select a home and identifying home features that work best with your lifestyle, family size, and career.
• Identify the pros and cons of buying –vs.- renting.
• Understand your credit history and getting your credit in order.
• Review your money management habits.

Learn steps to buying a home including:

• How much you will need for down payment and closing costs.
• How to look at houses.  Identifying obvious structural problems like sagging roof lines, termites, stains, mold, leaks, and signs that electric bills may be high.
• Understand seller disclosures and real estate law.
• Making offers and negotiating a purchase contract.
• Getting a home inspection.
• Finding homeowners insurance.
• Understanding what Home Warranties are and what they cover.
• Home maintenance tips and who to call in case of emergencies.
• Preventative education to avoid loan default.
• Finding and selecting a Realtor and a mortgage lender.

Real Estate ownership entails more than going to the closing table.  Today there are many discounted homes that were once someone’s dream home but became a foreclosure nightmare due to a lack of education and long term planning.  Set yourself up for long term success by investing in an eight hour Homebuyer Education class to help you make the right choices for your situation.  Classes are offered by HUD Approved Counseling Agencies in your state, and they are typically free of charge. 

Happy house hunting!

July 11, 2009