What to Know About First Time Home Buyer Classes

You might think that buying a home is easy. But, it really isn’t. In order to buy a home, you do not need to just get a loan and buy a home. Once you really think about it, it is more than a simple transaction. There is much more to buying a home. This is why you should think about attending a first-time homebuyer class. You do not need to attend these classes to buy a home. If you want to receive special funding, then you might be required to complete it. Even if it is not necessary, these classes will prepare you for the homebuying process. You will learn what to expect and how to avoid homeownership problems. This article will tell you everything you need to know about a first-time home buyer class.

What Is a First-Time Homebuyer Class?

First-time homebuyer classes are comprehensive courses that will tell you everything there is to know about the homebuying process. These classes aim towards helping people who are buying their first home. But, you can also attend these classes, if you have already bought a home. You will be able to stay updated on the homebuying process.  Different organizations offer first-time homebuyer classes. These organizations include: non-profit organizations, state housing finance agencies, banks, and credit unions.

You can attend these classes online, through the phone, or in-person. However, we suggest that you attend these classes in-person. That way, you will be able to ask more questions and allow more interactions. If you prefer online classes, then you can take the class at your own pace. There are two types of first-time homebuyer classes, which are classes that the Department of Housing and Urban Development (HUD) approves and classes that the HUD does not approve. Either way, both classes will help you through the homebuying process. But, the HUD-approved courses are the ones that you will need to receive a special funding program.

What You’ll Learn in a First-Time Homebuyer Course

With first-time homebuyer classes, you will find that they are very thorough and comprehensive. Typically, these courses are based on a set of industry standards and provide information on everything you should know about buying a home. As a prospective homebuyer, there are five components that will really help you with a first-time homebuyer course. These five components are the following:

  • How to Know If You Are Ready to Purchase a Home or Not
  • How To Create a Budget And Get Your Credit Ready
  • Financing Your Home
  • How Can You Shop For A Home
  • Maintaining Your Home And Your Finances

How to Know If You Are Ready to Purchase a Home or Not

The first topic that first-time homebuyer classes will cover is whether you are ready to purchase a home or not. You will find it if you are able to afford a home, the benefits and drawbacks of homeownership, and the homebuying process. While you are attending the class, you will take your credit, the amount of money you have to make, a down payment, and your debt-to-income ratio into consideration. You will not be able to purchase a home, if you are not ready financially and emotionally. Remember that purchasing a home means adding a big responsibility to your life; you need to make sure that you are up to the task.

How To Create a Budget And Get Your Credit Ready

With the first-time homebuyer class, you will learn how to set goals and create a household budget. Additionally, you will understand how to track your expenses, control your debt, and set a budget for homeownership. This class will also help you determine your current credit status. If your credit is good enough for a loan, then that is great. But, if it is not good enough, then this class will teach you how to fix your credit score. All of these topics will help you manage your home, after you buy it. Once you buy a home, you need to take into account the additional expenses that come with the home.

Financing Your Home

This topic covers how mortgage lenders operate and how to qualify for a loan. You will find that the first-time homebuyer class also offers ways to find special financing programs. Additionally, you can learn about the different forms of loans and how to fill out the loan application. You will know about the approval process and the closing process. This class will educate you on how to avoid fraudulent loans and lenders without putting yourself in financial risk. With this topic, you will understand everything there is to know about financing your home through a loan.

How Can You Shop For A Home

With this section, you will learn how to select the right home, the right neighborhood, and the right realtor. All of these factors are important to buying a home. Additionally, you will learn about the different types of homes and the different types of homeownership. This first-time homebuyer class will show you what a purchase contract is and the steps you need to take to purchase a home. These steps will help you learn how to negotiate and make an offer. You will learn about home inspections and the home closing process.

Maintaining Your Home And Your Finances

This area of interest will explain how you can maintain your investment through proper insurance coverage. Additionally, you will be able to plan ahead for home repairs and the upkeep of your home. You will learn how to use energy-efficient practices and appliances. This class will teach you tips on preventative maintenance, any improvements you might need, and what you can do if you are unable to make a mortgage payment. Simply put, you will learn about how you can maintain your finances, as well as the maintenance, and improvement of your new home.

Is a First-Time Homebuyer Class Required?

It depends on your current situation and what you want. Generally, you do not have to complete a first-time homebuyer class. But, you should take advantage of this class, since it will teach you so much. Plus, specific first-time homebuyer assistance programs or financing options will require that you complete a first-time homebuyer class. It is a condition to receive help from these funding options.

How Long Does a First-time Homebuyer Class Take?

If you decide to take a first-time homebuyer class, then you should know that it will not take time out of your schedule. Typically, these classes do not take more than eight hours and you can finish this course in one day. If you plan on completing these classes online, then you can complete it at your own pace. The next step you can take after completing a first-time homebuyer course is training through homeowner counseling programs.

How are Homebuyer Classes Graded?

If you are eligible for specific first-time homeowner programs, then you cannot only sign up for the class. You will need to pay close attention and absorb all of the information. Additionally, you will need evidence that you completed the class. In terms of grading, this class grades students on a pass\fail system. You might find that there are programs that require students to take quizzes and are graded on it. Once you pass the class and complete it, the class will give you a certificate of completion to show lenders.

When Should I Take a First-Time Homebuyer Class?

If you need to attend a first-time homebuyer course to receive funding, then you do not need to attend the course until you are at the financing step of the homebuying process. Typically, lenders will need you to complete your training before closing. That way, you can qualify for loans or financial assistance. There is no specific time that you should attend a class. But, you should attend a class as early in the process as possible.

Finding a First-Time Homebuyer Class

You might find several lenders, non-profit organizations, real estate brokerages, banks, and credit unions that offer first-time homebuyer classes. If you want to find a program that is credible and qualified, then you should look at the HUD directory of HUD-approved housing counseling agencies. Additionally, you can also check with your state housing finance authority through this HUD directory, as well. It can be very easy for you to find a class through these directories.


In conclusion, you should really think about attending a first-time home buying class. Even if you have already bought a house before, then, you can remain updated on the homebuying process. There are five main topics of interest that the class will focus on: How to Know If You Are Ready to Purchase a Home or Not, How To Create a Budget And Get Your Credit Ready, Financing Your Home, How Can You Shop For A Home, and Maintaining Your Home And Your Finances. Additionally, you might need to complete this course if you want specific financing options or lending programs.