What Is A First-Time Home Buyers Class, And Should You Take One?

Buying a house can be a complex process and may even feel a bit overwhelming to an unprepared first-time home buyer. Besides having a basic understanding of how the home-buying process works, a first-time home buyer should have an idea of the different costs involved with purchasing a home, how to determine what they can afford, and how to choose a lender. Home buyers who want to go into a real estate transaction prepared could benefit from enrolling in a first-time home buyers class.

Let’s take a look at what a first-time home buyers class offers and why it can be worth it for first-time home buyers.

How A Class For First-Time Home Buyers Works

A first-time home buyers education course does exactly what it says, it teaches you how to buy a house. It can be useful for those buying for the first time or previous homeowners who faced challenges during their past homeownership.

First-time home buyer classes are offered through various organizations as in-person classes, one-on-one phone sessions or online courses. Course content is selected and put in place by the U.S. Department of Housing and Urban Development (HUD), and it generally abides by the National Industry Standards for Homeownership Education and Counseling.

A first-time home buyers class is typically graded as pass/fail based on tests or quizzes given at the end of the course. Upon passing, you’ll receive a certificate of completion as proof you finished the class.

What You Can Learn In A First-Time Home Buyers Class

A first-time home buyers class can shed valuable light on the home-buying process and better prepare prospective buyers for their home buying journey. Below are some topics you’ll likely explore in a home buying education course.

Budgeting And Creditworthiness

Once you’ve completed a first-time home buyers class, you’ll understand how much money goes into buying a house, particularly as it relates to making a down payment and paying your closing costs. A home buyer education course will also instruct you on how to properly budget for a home and manage your finances.

Additionally, you’ll learn how your credit score impacts your mortgage interest rate and why it’s important to have healthy credit when shopping for a home.

Determining Your Home Affordability

For many, a first-time home buyers class is invaluable because it helps them determine how much house they can afford. Inexperienced buyers could go house poor if they purchase a house they can’t afford the monthly payments on.

Choosing The Right Lender

If you haven’t worked with a mortgage lender, a first-time home buyers class can take you through the process of choosing a lender to ensure you find one that suits your situation. A course explains how to shop around, compare offers, and how to get a mortgage preapproval.

Applying For A Mortgage

Classes will also explain what the different types of mortgages are and how to apply for a home loan. You can learn what type of home loan is best for you, whether that be conventional, FHA or another type of mortgage. Prospective borrowers can also learn about fixed- versus adjustable-rate mortgages and which could save them the most money in the long run.

Home Maintenance And Other Costs

A first-time home buyers class also helps prepare you for the various additional costs of owning a home. After the buying process is over, homeowners become responsible for maintenance, home repairs and the costs associated with them. If you know about these costs ahead of time, you can be much more prepared to handle them.

Should You Take A First-Time Home Buyers Class?

You’ll glean useful knowledge from a first-time home buyers class, but taking one isn’t necessary to begin the home-buying process. However, lenders of certain types of home loans and offering particular loan programs may require borrowers to complete a HUD-approved first-time home buyers class to qualify.

First-time home buyer programs and grants can offer borrowers benefits like lower rates and flexible credit requirements, plus closing cost and down payment assistance. Successful completion of a first-time home buyers course can open the doors to loan programs that will ultimately save you money.

As for the affordability of a first-time home buyers class, expect to pay $0 to $100. If a course is required for a loan program, a lender, real estate agent or the HUD will often pay for the class. Or you might be able to roll it into your closing costs when you move forward on a home purchase. If you’re enrolling in a class to qualify for a loan program, just make sure the class is HUD-approved. Otherwise, it may not count toward your eligibility.

First-Time Home Buyers Class FAQs

Do first-time home buyers have to take a class?

Some lenders and home buying programs may require you take a first-time home buyers class as part of your eligibility. Otherwise, taking a class isn’t required but can be extremely helpful.

Can I take a first-time home buyers class online?

Yes, many organizations offer first-time home buyers classes as online courses. Class materials can be printed or accessed at home, and the course can be taken at a pace the participant finds convenient.

How long is a first-time home buyers class?

A typical first-time home buyers class is 8 hours or less and takes place in 1 day. If you choose the online course route, you may be allowed to go at your own pace.

The Bottom Line

Being prepared can make the home buying process feel far less stressful and more manageable. Completing a first-time home buyers class can provide you with valuable information as you embark on your home buying journey, and it can qualify you for home loan programs that can help you financially. Courses are often affordable — or even free — and widely available, so consider your local and online options if you want to be more prepared to buy a home.

If you think you're ready to continue your home buying journey, start the approval process with Rocket Mortgage^®.