What is homebuyer counseling?

Professional guidance that helps you learn about buying a home, including how to finance your purchase. A counselor conducts an interview and provides an overview of the lending process, discusses available options and solutions, and answers any questions you may have. This service is usually free.

When do I need homebuyer counseling?

Counseling is required if you have or are getting a government-backed loan, or if it is required by your lender. Anyone buying a home or applying for a mortgage for the first time can benefit from a pre-purchase counseling class.

What does a homebuyer counselor do?

The counselor will cover topics such as finding the right home, choosing a neighborhood, mortgage types and terms, and clarify common real estate industry terminology.

First-time homebuyer programs include discussions about:

• Applying for a mortgage
• Downpayment and closing costs
• Credit
• Making an offer
• The home inspection
• Preparing for closing
• Special considerations for buying condos and multifamily properties
• Post-purchase issues
• Budgeting

How do I choose a homebuyer counselor?

Counselors are usually trained professionals in the real estate industry who receive certification from HUD or Neighbor Works ® America, a national nonprofit organization created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts.

Ask your lender or mortgage broker about first-time homebuyers programs that are approved by state and federal agencies.

Learn more about homeownership education here.

How much does homebuyer counseling cost?

Counseling is usually free. If there is a charge it is between $20 and $75.