It’s safe to say that the homebuying process is considerably more complex than leasing or renting an apartment, home, or studio. Owning your home requires a long-term financial commitment and heavy responsibilities. Fortunately, some states provide what are known as “homebuyer education courses” that can be completed in a classroom or online within 6 to 8 hours. You’ll even get a Certificate of Completion upon passing a test once you finish the course.
Just remember, purchasing a home involves much more than coming up with a down payment, securing a mortgage, paying for closing costs, and moving in. Over the years, you’ll be dealing with ongoing maintenance, preventative up-keep, and repairs. By taking a homebuyer education course, you’ll learn all about the pros and cons of home ownership as well as you’re ready for the homeowner experience.
There are 4 benefits of taking a homebuyer education course that are worth mentioning, as follows:
Homebuyer education courses assess your readiness to purchase a home – the basic rule of thumb to follow when you’re planning on buying a home is that logic should drive your decision, not your emotions. A homebuyer education course provides critical need-to-know information about the many aspects of purchasing a property. You’ll learn important information such as being a successful homeowner, closing on a home loan, and preparing yourself for home ownership.
Homebuyer education courses explain the different types of mortgages – although conventional mortgages are a popular option, you’ll learn about other mortgage options that may be more appropriate for your financial situation. You’ll learn about adjustable-rate mortgages (ARM’s) and fixed rate mortgages as well as each one’s features and benefits. With all of this information, it will be easier to choose a mortgage option that accommodates your specific needs.
Homebuyer education courses may be FREE – in some cases where a mortgage program requires you to complete a homebuyer education course, there may or may not be a fee required. The Fannie Mae Framework homebuyer course is a good example. As part of the HomeReady mortgage program, this course charges a $75 one-time fee. However, some financial institutions and mortgage lenders offer the course for FREE.
Homebuyer education courses will teach you about credit requirements – one of the subject areas covered in this course is the impact that your FICO score has on the interest rate of your mortgage as well as the monthly mortgage insurance premium. It also determines how much you’ll ultimately spend on your home. You’ll also learn about minimum qualifying credit scores for different loan and mortgage programs. You’ll also learn how pre-approvals differ from pre-qualifications and mistakes to avoid once you’re pre-qualified.
For additional information regarding a homebuyer education course or to discuss getting pre-qualified or pre-approved for a home loan, call Liberty Capital Services today at 614-505-0620.