First-time home buyers classes: A guide

Do you have questions about how the home buying process works? It can be difficult to know what to expect from the process until you are in it. This is why most first-time home buyers find it helps to take a first-time home buyers class.

What is a first-time home buyers education course?

Put simply, a first-time home buyers education course will walk you through how to buy a house. Lenders recommend – and some loans require – that you enroll in such a class.

Here is what you can expect to tackle in a first-time home buyers class:

• Whether you’re ready for homeownership
• Budgeting and managing your money
• Assessing your creditworthiness
• Deciding the type of home that you can afford
• Programs that can help you buy your first home
• Helping you compare different types of mortgages and lenders

If you have struggled financially as a homeowner in the past, this type of class is especially beneficial.

How long is a first-time home buyers course?

First-time home buyers courses can take anywhere from 4 to 8 hours. Online courses are usually self-paced and can typically take 1 – 2 days to complete.

Why should first-time home buyers take an online education course?

If you are interested in learning more about homeownership and how to prepare for it, but prefer not to attend in person, don’t worry. Online classes are available.

If you want to open the door to first-time home buyer programs, the info you pick up from these classes will help you make better decisions throughout the home buying process. Programs, such as Freddie Mac Home Possible^® and Fannie Mae HomeReady^®, and others may give you access to:

• A lower down payment
• Government programs
• Flexible credit requirements
• Closing-cost aid
• A lower mortgage interest rate
• Grant opportunities

How to find first-time home buyers courses

If you’re not sure how to get started as a home buyer, take a look at the U.S. Department of Housing and Urban Development’s list of approved courses. Your lender or real estate agent also may be able to point you toward a first-time home buyers course.

Online and on-demand

If you want to access the course when it works for you, you should have no trouble finding and signing up for an online class.

At a nearby location

You can find a class close to home if you prefer to learn in person. Lenders and agents often offer courses for home buyers. If you are already working with a real estate agent or lender, ask them if they offer or can recommend a first-time home buyers class.

Make sure the course meets the requirements beforehand if you need the class to qualify for a specific grant or loan program.

What to expect from your home buyers course

A class should give you an opportunity to better understand the home buying process. Common topics covered in classes include:

Budgeting for homeownership

You should get ready to level up your financial management skills, such as budgeting for your home and achieving the credit score you need to buy a house. You also will learn how your credit score affects the mortgage interest rates you will receive.

Selecting a home

You will be walked through the process of purchasing a home, with emphasis on how to determine how much home you can afford. In the meantime, you can use our mortgage affordability calculator to estimate your budget.

Financing your home purchase

Finding the right lender – or even the right loan – is not always as straightforward as it may seem. Courses for first-time home buyers give help you learn about loan types and lenders so you can make the right choice for your situation.

The right mortgage

The most common home loans are conventional mortgages and government-backed loans – offered through the Federal Housing Administration, Veterans Affairs, and U.S. Department of Agriculture. Rocket Mortgage^® does not offer USDA loans but will help you learn about them so you can make the best choice for you.

You will need to compare conforming versus nonconforming loans and fixed-rate loans versus adjustable-rate mortgages. The loan you choose will determine your minimum down payment, your chances of loan approval, the size of the loan you can get, and more. Enrolling in a first-time home buyers course will equip you with this need-to-know information.

The right lender

A first-time home buyers course will also advise you on how to compare lenders, gather your documentation, and close on your house. Different lenders will offer you different interest rates and incentives, so knowing how to choose a lender can save you thousands of dollars over the life of a loan.

With so many lenders out there, it can be easy for you to become overwhelmed. A first-time home buyers course can help ease the anxiety and guide you through how to go about getting the mortgage you need to purchase your first home.

Managing a home

In a first-time home buyers course, you will also learn how to manage your home after you buy it. You should have a better understanding of the costs and responsibilities that come with homeownership by the end of the course.

What do classes for first-time home buyers cost?

Your home buyer education class that you choose can range from free to $100 for the class and accompanying materials. Sometimes, if you complete the class, you can get your class fee deducted from your closing costs. If you choose to sign up for a free first-time home buyers class, just make sure you are signing up for a HUD-approved course to get access to the same benefits.

Is it worth taking a first-time home buyers class?

If you’re a first-time home buyer, taking a course is never a bad idea. Buying a house will be an involved process. Going into it armed with knowledge and skills can help you feel more confident in your abilities to make the best decisions for you. You might even qualify for certain home buying incentives after your class is complete.

The bottom line: Get your questions answered before you buy a home

If you are thinking about buying a house, a first-time home buyers class is a great way to learn about what you are getting into. Home buying classes are affordable and typically easy for you to find. As you being the home buying process, they can provide you with a wealth of information that will come in handy.

We’re here to help if you’re ready to get this process started. You can apply for your first mortgage approval online today or give us a call at (833) 326-6018.