June is National Homeownership Month: Preparing for Your Homebuying Journey
June marks National Homeownership Month, a time to celebrate the numerous benefits of owning a home. For many, purchasing a home is the most significant investment they will ever make. The process, however, can be overwhelming, particularly for first-time buyers. Should you navigate the market on your own or hire an agent? Are your finances in order? How do you choose the right lender, and how much do you need for the down payment?
Given the complexities and financial stakes involved, it’s crucial to be well-prepared. If it feels like there are numerous hurdles standing between you and homeownership, homebuyer education or counseling could be the right first step.
While this step may add some time to the homebuying process, especially in today’s competitive market, the data shows that homebuyer education and counseling lead to successful long-term homeownership. Additionally, most down payment assistance programs require participants to complete these courses, so you’ll be ahead of the game.
Homebuyer Education vs. Homebuyer Counseling: What’s the Difference?
Homebuyer education is a structured course covering the fundamentals of buying a home, including how to determine your budget, selecting the best loan program, securing the down payment, and understanding what to expect before and after closing. These courses typically range from four to eight hours and can be completed in one or two days, either online or in person.
For homebuyers with unique financial circumstances, or those seeking a deeper dive into the homebuying process, working with a housing counselor may be beneficial. A housing counselor acts as a homebuying coach, offering personalized guidance based on your individual situation. They can assist with credit issues, review different loan terms, and help you find the right homeownership education courses.
Is Homebuyer Education or Counseling Required?
If you’re seeking down payment assistance, most programs require you to complete homebuyer education, often through a HUD-approved counselor or agency. However, even if you’re not using a down payment program, you can still benefit from these educational resources.
The type of course and time commitment varies depending on the program. Some courses are offered in person and may require a Saturday commitment, while online options allow you to complete the course at your convenience.
What Does Homebuyer Education and Counseling Cost?
Most courses cost between $75 and $100, which typically includes access to planning documents, videos, and other resources after the course is completed.
Some education courses or counseling services may be provided for free by a housing agency administering a homeownership program. It’s a good idea to speak with your lender or the homeownership program provider about the options available.
Even if you’re not a first-time buyer, homebuyer education and counseling can be incredibly beneficial. The homebuying process and its requirements are continually evolving, with new programs being introduced regularly. When it comes to buying a home, there’s no such thing as being too prepared.
Ready to buy a home?
Find down payment programs in your area today and see if you’re eligible!
