Homebuyer Education: Who Will You Turn to For Advice?

Aside from investors or those who move frequently for work, most people will only buy a few homes in their lifetime: A starter home, a move-up home, and one in retirement (though some stats estimate homeowners move house every seven years).

Despite the wealth of information available on the internet, the average consumer will never become an expert in the field; rather, most will consult family and friends, or professionals associated with real estate to help acclimate them to the prospect. According to one study conducted by NeighborWorks America, real estate professionals were ranked highest (at 70 percent) as a source of information about homeownership. Nearly two-thirds of respondents indicated they would confer with friends, family, and co-workers; other sources of information included web searches (59 percent); mortgage lenders (57 percent); housing counselors (31 percent); and social media (24 percent). 

When you think about it, it's strange that, as consumers considering what will be one of the largest purchases they’ll ever make and one that will play an integral role in their daily lives, more people don’t seek out education to better understand what they’re signing up for. The primary reason potential homebuyers don’t do this is because they may not know this type of education is available, and the organizations that sponsor it don’t always market their services to the masses. In short, it’s simply not on the radar of the average consumer. 

One program that does a great job in educating first-time homebuyers is Home Stretch, a program sponsored by the Minnesota Homeownership Center in Saint Paul, a designated HUD-approved Housing Counseling Intermediary. In a nutshell, according to the website: 

Smart, sustainable homeownership starts with solid information. Our Home Stretch course is a series of in-person, classroom style workshops taught by experienced professionals including certified homebuyer educators, mortgage lenders, real estate agents, and home inspectors. Get objective, practical information to make the best homeownership choices for you and your family. You will learn how to:

• Determine your financial situation

• Manage credit to make homeownership more affordable

• Choose your best mortgage options

• Select the right home for your family

• Understand the loan closing process

• Find down payment help, special loans for first-time homebuyers, and other offers

For the last 20 years, Home Stretch has provided over 100,000 Minnesotans with the knowledge they need to be successful homeowners.

The in-person workshop takes place over 2 or more nights, and ranges from free to $40. After completing the course, participants receive a certificate deeming them eligible for certain special financing programs or down payment assistance that can help make homeownership more affordable. 

Learn more about this helpful and valuable resource online at the Minnesota Homeownership Center’s website.

Angela Anderson, Realtor, Results Support Services: EMAIL — BIO

Licensed Associate Working with Sharlene Hensrud of RE/MAX Results, and HomesMSP — Sharlene, John, Angela

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