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The What & Why’s to HBE (Home Buyer Education)

Posted on May 6, 2013 by Ray Williams (NMLS #216267).

When you’re a first time home buyer there is a lot to take in when you are purchasing a home.  You will have lots of confusion, questions and will be overwhelmed.  Buying a home is not necessarily an easy process and that is why there is Home Buyer Education. 

What is Home Buyer Education (HBE)?

It is an educational course that covers the complete process of buying a home and becoming a homeowner.  The curriculum includes financial management, credit management, selecting a home, building your buying team (realtor & lender), mortgage products and disclosures, real estate contract review, inspections, closing and post closing information.  Colorado specific programs are addressed as well, ie-down payment assistance programs.

As I was a personal participant to this course I know first hand that they also cover items you would never of thought of, such as, ways to save $ on your mortgage over the life of the loan, what to look out for and pay attention to regarding the neighborhood, including tips such as going to the property at different times of the day and just sitting outside to listen to the neighborhood.  Are there dogs that bark at night, are there cars that speed through the streets, etc.

Why I feel it is important….

We all know you can educate yourself via internet but I feel that when you are making one of the biggest financial decisions you will have in your lifetime, the extra time and attention to the home buying process is highly recommended.  They offer these courses online but I feel that the “actual” live class would be better, you will get much more out of it, plus you get the opportunity to meet other first time home buyers and possibly get contacts to refer back to when needed.   

Why & When is Home Buyer Education required?

For many first time home buyer mortgage products as well as the Mortgage Credit Certificate (MCC), HBE is required for loan approval, this is not an option. Why?  Not only is it a good idea whether it is required or not but the investor (bank) wants to ensure that you as a buyer are educated by being better informed as a buyer and hopefully the process will be more successful for all involved.  Their goal is for you to be a better home owner and lower the risk of foreclosure.  Being better prepared, knowing your resources and applying the knowledge you will lower your chances of becoming underwater on your mortgage.  It will prepare you for what to expect as a homeowner and as I stated before, it will help you prepare for the home buying process from beginning to end.

When & Where do you complete your HBE?

The sooner the better!  Ideally you should attend when you are deciding and wanting to purchase a home, preferable even before talking to an agent and/or lender.  At the latest you should attend once you are under contract.

There are two types of HBE:

Onsite Classes & Online Classes.  *Please note that some online courses charge a fee and some loan programs and/or down payment assistance programs don’t accept the online course.  Here is a link for info on where and when the classes are available.

If you have any questions please contact me.  Please make sure to subscribe to my blog!  And “like” us on Facebook, follow me on twitter, LinkedIn and check us out on Google + and Pinterest.

If you would like to get pre-approved please complete my secure online loan application.

~Cheers

Ray Williams

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