Harris: Homebuyer Education Class: What Is It, and Why Do I Need It?
By Charlestien Harris
Now that you’ve decided you’re ready to purchase a home, it’s time to learn more about the home buying process. A Homebuyer Education Course is designed to educate potential buyers about the steps involved in purchasing a home. It covers topics ranging from saving for a down payment to understanding the mortgage process and maintaining your home. These courses are often required by lenders or government programs in order to qualify for certain homebuyer assistance programs.
As a counselor, I often find that many consumers are unfamiliar with the home buying process and don’t know where to begin. I love the adage, “The more you know, the more you grow,” and I believe there’s a lot of truth in that. The Homebuyer Education Course is an eight-hour class that helps you understand what buying a house really entails. Taking the class before you begin the process can be incredibly helpful.
Below, I’ll walk you through each topic covered in the course to help you understand why it’s an essential step toward becoming a homeowner.
1. Are You Ready to Buy a Home?
Last week, I offered a self-assessment to help you determine whether you’re ready to begin the homebuying process. How did you do? This topic helps you evaluate your knowledge and readiness by asking the right questions. Homeownership can become a reality if you set realistic goals, plan carefully, consider the costs, and seek expert advice from a HUD-certified counselor.
2. Managing Your Money
Money management is a critical part of the home buying process. The state of your finances will determine whether you’re ready to purchase a home. Managing your money involves making daily, weekly, monthly, and yearly decisions to cover your living expenses. Buying a home may require changing some of your financial habits to afford the costs of ownership. It’s worth taking an honest look at your finances and getting them in order before starting the process. Creating and living on a budget for a few months before applying for a loan can help you make necessary adjustments and ensure a smooth transition from renting to owning.
3. Understanding Credit
Understanding your credit is key to achieving the American dream of homeownership. This section of the class explains how credit works and how to use it wisely. Good credit allows you to borrow money and repay it responsibly. If you have credit issues, it’s best to address them before meeting with a loan officer. Poor credit and high debt can be obstacles, but they don’t have to end your dream. Seeking help from a financial counselor is a positive step. Southern Bancorp has several financial counselors available – check with your nearest branch for more details.
4. Getting a Mortgage Loan
Once your credit is in order, the next step is applying for a mortgage loan. Many people are unfamiliar with this process. This part of the class explains what a mortgage is, what a house payment includes, and the steps involved in obtaining a loan. It answers questions such as: What is a mortgage? What does a house payment include? What is the loan process? Who qualifies for a mortgage? Understanding this process helps you prepare for your meeting with a loan officer and gather the necessary documentation.
5. Shopping for a Home
Buying a home requires time, money, and attention to detail. This section covers topics such as assembling your homebuying team, types of homes and ownership, finding the right house, determining affordability, making an offer, negotiating, and understanding the closing process. The homebuying journey can be complex, but it doesn’t have to be overwhelming. Explore neighborhoods, attend open houses, tour new developments, read classified ads, and browse home magazines. Take your time – buying a home is one of the most important decisions you’ll make.
6. Keeping Your Home and Managing Your Finances
You’re almost at the end of your journey, but one crucial topic remains: how to keep your home. In other words, how do you avoid delinquency or foreclosure? You’ve achieved your dream, and the last thing you want is to lose it due to financial hardship. This section teaches you about options for staying in your home during tough times. It also covers insurance types, tax responsibilities, maintenance tips, energy-saving strategies, and reassessing your finances to stay on track as a successful homeowner.
What do you think? Eight hours may seem like a long time, but the valuable information you’ll gain is well worth it. Some homebuyer education classes are free, while others charge a nominal fee. Southern Bancorp offers this class to its counseling clients – contact your nearest branch for details.
Many lenders require this course, so be prepared to register. Upon completion, you’ll receive a certificate that may qualify you for down payment assistance programs and grants, especially if you fall into the low-to-moderate income category.
For more information on this and other financial topics, email me at charlestienharris77@gmail.com or write to me at P.O. Box 1825, Clarksdale, MS, 38614.
Until next week – stay financially fit!
Charlestien Harris is our financial contributor, a retired financial expert with Southern Bancorp Community Partners.
