Buying a home for the first time or even if it's your second home in a decade, for some, it can be sort-of a scary ordeal. Not everyone is enlightened about the home buying process. Even though I will be by your side through the transaction, it would be beneficial to take a course on how to become an Educated Buyer before we launch the process.
Homebuyer Education courses are now being offered online by lenders and nonprofit community organizations. They are useful for all prospective buyers — those entering the market for the first time or even making a second or third home purchase. Some lenders require prospective buyers to take a HUD-approved homeowner course in order to qualify for a loan. In May, Wells Fargo debuted a new program called yourFirstMorgage, which includes a 1/8 percent reduction on mortgage rates for buyers with down payments of less than 10 percent if they complete a homebuyer education course. Homebuyer courses aim to demystify credit-score requirements, budgeting, shopping for a mortgage, home inspections, insurance, and maintenance, among other items.
Here are some more links that are independent and has unbiased information that can help you understand choices that you will are going to make in buying a home:
A Sample of Homebuyer Education Programs
HUD provides a comprehensive list of its approved resources, including homebuyer education courses and one-on-one counseling. Here are a few of those programs, which are available online and can be completed at your leisure.
Time to completion:About four hours
Includes nine education modules with a quiz at the end. Coupons are available, which agents can provide as a gift to clients. After completing the course, users download and save a Certificate of Completion. For buyers who purchase a home through Fannie Mae’sHomePath REO program, the cost of the course will be reimbursed. Fannie Mae also offers closing cost incentives to first-time buyers in the HomePath program who complete the Framework course.
MGIC Homebuyer Education
Time to completion:About an hour
This program is suitable for buyers who are just beginning to learn about the homebuying process and who do not yet have a lender. It’s approachable and user-friendly, and the course can be taken by a “stealth” user without registering. Users can also register and take a quiz at the end, which will satisfy requirements for Freddie Mac Home Possible programs.
Time to completion:Eight hours, taken online at your own pace
This is one of several financial courses offered through the HUD-approved “Home Purchase” program. It covers topics such as determining if now is the right time to buy, shopping for a home, and getting approved for a home loan.
CreditSmart Steps to Homeownership
Time to completion:About two hours
This program focuses on good credit: how you can improve your credit score, why it’s necessary to do so, and how it leads to home ownership. Users receive a certificate, which can be used for Freddie Mac Home Possible programs.
United Guaranty’s Home Ownership Course
Time to completion:Two to three-and-a-half hours
Satisfies the homeownership education requirement for Freddie Mac’s Home Possible affordable home program. After you complete the course and assessment, your lender (if applicable) will be notified by email.