The homebuying process has many moving parts. And not understanding them, such as loan terms, interest rates, or lender's fees, can drain your bank accounts and have you working several jobs to pay the mortgage. Homeownership benefits and rewards can be greater than tenancy, but the losses may financially and emotionally impact you more than tenancy. You do not want your American Dream to morph into a nightmare. To avoid buyer's remorse, you should not buy a home without pre-purchase counseling or first-time homebuyer's education.
Also, as a homebuyer you have to trust professionals you may not know to represent your best interest. You can have a problem if you are unfamiliar with the homebuying process, do not know industry practices, or how to conduct your due diligence as a check and balance. To ensure your best interests are first and foremost, you must understand what the process entails, loan terms, closing costs and fees, and how to avoid predatory real estate practices.
Throughout The Guide, you were informed that HUD-certified housing counselors are one of your best resources to prepare you for housing opportunities. They provide pre-purchase education, housing counseling, and community resources that empower homebuyers to advocate for themselves. Homebuyers can also learn about downpayment and closing costs assistance programs, affordable housing opportunities and network with their peers.
HUD-certified housing counselors do not earn income, commissions, or profit from their clients’ purchase or sale of real estate (house, condominium, land, co-op, multi-family building, etc.). They are employees (not on commission) of Community-Based Organizations (CBO) that are also HUD-approved housing counseling agencies (funded in part by the federal and, or D.C. government). Housing counseling programs and services are free and open to the public.
For a basic overview of the homebuying process, see the 10 Steps to Homeownership. It briefly explains each step and introduces the professionals who work with homebuyers on their path to homeownership. The 10 Steps to Homeownership is only an introduction. To gain the comprehensive knowledge needed to ensure your best interest is well represented, seek guidance and training from a HUD-certified housing counselor.