What will you learn in a homebuyer education program?
All homebuyer education courses will be slightly different, but in general, here are some topics you can expect to learn about.
Are you ready for homeownership?
In a homebuyer education course, you’ll learn your readiness for homeownership from a variety of standpoints.
It will cover some of the benefits of renting vs. buying a home so you can consider if buying a home is truly the best option for you.
You may also learn about credit scores, including how to fix or improve it if needed, and how it can impact your lender’s decision to lend to you as well as the terms and rates you can get based on your score.
Saving for homeownership
You’ll also learn more about how to save for homeownership, including saving for your down payment, how to set aside funds for expenses you may have during homeownership, as well as how to appropriately budget.
Here are some resources that can give you a head start!
Preparing to buy a home on a budgetBudgeting tips for homeowners
Home budget calculatorBuying a home with low income
Understanding the Mortgage Loan Process
Mortgages are…complicated. There are multitudes of programs and products, and while Google can provide an array of answers to your questions, sometimes it’s hard to know where to begin.
In a homebuyer education course, you can expect to get some insight into the process, including help determining how to choose the right lender and product (we’re biased, but we think you should consider IncredibleBank 😉).
You’ll also learn some key lending terms, how to get the best possible rate, and why that rate is so important.
Perhaps most importantly, you’ll learn how to determine how much home you can afford (hint…even if you qualify for a certain dollar amount doesn’t mean you’ll want to look for a home at that price).
Looking for a home with a real estate agent
Now comes the fun part – looking for a home! In a homebuyer education course, you’ll learn how to choose the right real estate agent for you, what types of housing options there are.
You’ll also learn more about what the process of home shopping will look like.
Making an offer
You’ve done your house hunting and found a great place – now it’s time to make an offer! It’s exciting, right?
Yes! And…well, a little stressful too. In these courses, you’ll get insight into what the process of making an offer may look like.
Closing on your loan
Closing on your loan is a big day! You’ll find out what to expect on closing day, as well as how you can make sure you’re prepared with all of the documentation you’ll need.
Homeownership
You’re in your new home! But the fun doesn’t end there. Learn what you need to know about paying your mortgage, planning for expenses, and maintaining the value of your home.
How much do homebuyer education courses cost?
Great news! Some of these programs are totally free. Some have a minimal cost ($10-15), and some can be north of $100.
If you are required to take a homebuyer education course as a part of your loan program, you’ll want to be sure the program you take meets the requirements. Your mortgage lender can help find the right course for you!
Should I take a homebuyer education course?
If it’s required based on your loan program… of course.
However, even if it isn’t required, and even if you’ve owned a home before, taking these courses can help you avoid predatory practices from lenders and real estate agents, ensure you don’t buy too much home for your budget, and help you make the best decisions related to your home.
Here are some other resources on homebuyer education courses: