Becoming a homeowner is a huge undertaking. There are a lot of steps that involve people from multiple industries and some of those steps require money in advance. Mistakes in the purchase process can cost you anything from some of your time to hundreds of thousands of dollars.
Fortunately, there are agencies that can help educate and prepare you for the process. Here are some of the reasons that attending a Home Buyer’s Workshop from a HUD-approved Housing Counseling Agency should be your first step in purchasing a home:
1. Shows you the real costs
You will have a better idea what each step should cost before you purchase and what kind of expenses you will face after you are handed the keys. This will help you avoid getting in over your head.
2. Helps you prepare
Having your documents ready and reviewed in advance by your lender will save you time and helps ensure you can really be approved for a loan.
3. Puts you in control
You should be interviewing lenders and realtors for the jobs. You will be able to ask better questions and recognize if you are speaking with a competent professional who can really get the job done.
4. Finds you money
Whether it is down payment assistance, special tax programs, cash to close, subsidized home prices or special loan programs, there are a variety of options created especially for first time home buyers. Many programs are only available for a short time or in specific communities. A local agency will make you aware of what is currently available in the communities where you will be searching.
5. Teaches you to deconstruct the payment
You’ll learn why your preapproval is really nothing but a guess. If you are not checking the insurance, taxes and other costs on the actual house you are considering purchasing, you could pay for unnecessary inspections and appraisals on homes you can’t really afford and even lose your entire deposit.
6. Might talk you out of it
The purpose of the workshop is to educate you on the process and understand the costs, responsibilities and work involved in owning a home. If you decide it’s not for you or that it’s not your time, it was still worth attending. Once you have the keys, you can’t just return it for a refund.