--- title: "4 Ways a Homebuyer Education Class Could Save You Thousands of Dollars" url: https://www.debt.com/news/first-time-homebuyer-class/ description: "Learning about mortgage and homeownership costs before you buy can save tens of thousands of dollars over the years." author: "Deb Hipp" date: 2022-08-24T19:48:24.000Z updated: 2024-05-22T16:19:43.000Z source: Debt.com --- # 4 Ways a Homebuyer Education Class Could Save You Thousands of Dollars Are you getting ready to buy your first home? Maybe you bought a home in the past but fell into financial and credit troubles because you weren’t quite ready for the responsibilities of homeownership. Either way, taking a homebuyer education course is a positive and rewarding step towards responsible homeownership. A homebuyer education course can prepare you for the total cost of homeownership when it comes to mortgages, maintenance and more. ## What is a homebuyer education course? Many mortgage lenders, nonprofit credit counseling agencies and local or national housing groups offer homebuyer education courses for consumers. You may be able to take a homebuyer course online or in person, depending on how and where the course is offered. Some lenders even require first-time homebuyers to complete a homebuyer education course before applying for a mortgage. For example, Fannie Mae requires most first-time homebuyers to complete and pass its free [Homeview](https://www.fanniemae.com/education?_ga=2.25706420.88167141.1661266427-734870378.1661266427) online course to qualify for certain mortgage programs and a lower down payment requirement. Freddie Mac also requires some borrowers for its HomePossible mortgage loan to pass a homebuyer education course on a mortgage before the note date. Taking a homeownership education course can help you determine if you’re financially prepared to buy a home. You’ll also learn how to save for a down payment and homeownership, the ins and outs of the mortgage process and how to choose and work with a real estate agent. “Providing access to tools and information helps create a well-informed borrower with a clearer understanding of their housing needs and household budget, allowing them to confidently move through the homebuying process,” according to [Fannie Mae](https://singlefamily.fanniemae.com/originating-underwriting/mortgage-products/homeownership-education). **Find out:** [An Introduction to Mortgages and Homebuying](/mortgages/) ## 4 benefits of completing a homeownership course ### 1\. Gain a better understanding of homeownership You may think you’ve studied up on homeownership enough to begin your home search. But there’s a good chance you may not fully understand all the costs and responsibilities of homeownership. When you own a home, your monthly mortgage payment is just one cost. Taking a homebuyer education course can help you understand and plan for all the costs of owning a home, including property taxes, homeowner’s insurance and home maintenance. **Find out:** [8 Homebuying Mistakes to Avoid](/housing/home-buying-mistakes/) ### 2\. Know the steps of the homebuying process The process of buying a home can be confusing and intimidating if you throw yourself into it without understanding how the homebuying process works. A real estate agent can help you understand the process. But you also need to learn about the homebuying process from a source that doesn’t have a stake in how much you spend on a home or the type of mortgage and terms for which you apply. That way, you approach homebuying as an informed consumer equipped to make the best financial decisions. ### 3\. Qualify for a lower down payment When you complete a homebuyer education course, you may qualify for a lower down payment on certain mortgage loans. For example, Fannie Mae offers a three percent down payment requirement on its HomeReady mortgage loans if at least one of the first-time homebuyers on the loan takes a homebuyer education course. **Find out:** [How to ACTUALLY Buy a Home](/housing/how-to-buy-a-home/) ### 4\. Learn how to choose a lender and apply for a mortgage Mortgage lenders have a large stake in making a profit and may steer you towards a longer loan or other loan terms that will cost you tens of thousands of dollars more than you’d pay on a shorter loan term. A homebuyer education class will show you the math on how much more you’ll pay with a 30-year mortgage over a 15-year mortgage. You’ll also learn what to expect with the mortgage application and approval process. **Find out:** [How to Buy a House with Bad Credit](/mortgages/how-to-buy-a-house-with-bad-credit/) ## How to find a homebuyer education course Lenders that require first-time homebuyers to take a homebuyer education course typically require that the course is offered by a HUD-approved housing counseling agency and/or one of the following: - Housing finance agency (HFA). - Other qualifying homebuyer education courses may include those offered by: - Community development financial institutions (CDFI) - Mortgage insurance companies - Other programs that meet the [National Industry Standards for Homeownership Education and Counseling](https://www.homeownershipstandards.org/Home/Home.aspx) Even if your lender doesn’t require a homebuyer education course, you’ll still benefit from educating yourself about the homebuying process before you apply for a mortgage loan. And your education investment won’t take that long or cost much, either. Many homebuyer education courses are free or cost under $100 and can be completed in under ten hours or during a one-day workshop. To find a homebuyer education course near you, search for a HUD-approved housing counseling services agency with this [directory](https://www.consumerfinance.gov/find-a-housing-counselor/) at the Consumer Financial Protection Bureau. A housing counselor can direct you to a HUD-approved homebuyer education course. **Learn More:** [Everything You Need to Know About the Housing Market](/housing/)