Homebuyers

What Are Homebuying Classes—And Should You Take One?

If you’re thinking about buying a home for the first time, odds are you’ve been told to take a homebuyer class.

Friends, lenders, and housing counselors may casually use the term as if it’s just another box to tick. But what exactly are these classes, and do you need one?

“Homebuyer classes are free classes that review all aspects of the homebuying process, and what to do once the house is theirs,” said Victoria Massengale, estates director at Compass in Los Angeles, Calif. “They are intended to service first-time buyers, and a terrific tool.”

Here’s everything you need to know about taking a homebuying class.

What is a homebuying class?

Buying a home for the first time can feel like a maze of acronyms, fees, and shifting rules. A homebuying class is one of the few tools specifically designed to guide you through the maze.

A typical homebuying class, whether held online or in person, walks first-timers through the entire purchasing process from finding the home to closing escrow.

First, the class covers various loan types and qualifying for a loan. It then explains how mortgages work, what lenders look for in your application, and how credit scores, down payments, and debt-to-income ratios affect your eligibility.

Instructors spell out closing costs, inspections, and the fine print that many buyers gloss over until it’s too late.

In some cases, you’ll have to take one to qualify for government assistance. In others, it’s entirely optional.

“Homebuyer classes are typically offered by nonprofit agencies, local housing agencies, or lenders,” said David Cohen, a real estate lawyer at the nationwide Cohen Property Law Group.

What else is covered inside the classroom

Classes also tackle life after closing, outlining ongoing expenses such as insurance, taxes, and the financial responsibilities associated with ownership.

The goal isn’t to scare you off homeownership but to make you a more informed shopper.

Even the most motivated buyers can be caught off guard by unexpected costs. A good class offers a safe place to ask questions before real money is on the line.

Who has to take a homebuying class

For some buyers, a homebuying class is a requirement. Homebuyer classes are typically required of first-time buyers who are utilizing specific loan products or aid programs.

For example, Federal Housing Administration (FHA) loans typically require a homebuyer education course if you’re using down payment assistance. U.S. Department of Agriculture (USDA) loans, which help buyers in rural areas, often require similar education. Even some U.S. Department of Veterans Affairs (VA) loans recommend classes to help veterans understand the complexities of mortgages and homeownership costs.

“Additionally, many local and state-level first-time buyer programs, especially those offering grants or low-interest loans, make it mandatory,” said Cohen. “So, if you’re seeking financial assistance or benefits tied to these programs, completing a class isn’t optional; it’s a requirement.

Agencies and lenders do this to ensure borrowers understand what they’re signing up for and to reduce the risk of default. Proof of completion—often in the form of a certificate—is part of your loan package.

The certificate is usually valid for up to a year, sometimes longer, and having it early means one less piece of paperwork to scramble over later.

Who may benefit from a class even if it’s optional

If you’re using a conventional loan with no assistance, no one’s going to force you into a classroom. And not every buyer needs to take a class on homebuying.

Some people already have a firm grasp of mortgage math or have gone through the process before. Others prefer to learn on the fly with their agent or lender guiding them.

But even seasoned savers can find value in a class. Understanding how interest rates interact with points, how closing cost credits affect your bottom line, or how to compare loan estimates can sharpen your negotiating edge.

For buyers who feel nervous about making the biggest purchase of their lives, a course can replace guesswork with hard numbers.

Choosing the right class

Not all homebuyer classes are alike. Most lenders and housing agencies maintain a list of approved providers, often in partnership with U.S. Department of Housing and Urban Development (HUD) or local nonprofits.

Some are one-day workshops, while others are multi-session programs spread over a few weeks. Many are available online with live instructors so you can log in from home. Costs range from free to around $100.

A good class should also be rooted in your state’s specific housing laws and common lending practices. Taxes, incentives, and disclosure rules vary widely. The best programs tailor their material to where you’re buying.

The bottom line

Homebuying classes are a wealth of information, but they won’t alter the current housing market.

They won’t lower your mortgage rate or guarantee you a home. They’re also not substitutes for a good agent or lender. What they can do is give you a clearer map of the terrain you’re about to cross.

Even if the class isn’t mandatory, completing it up front can clarify your budget and your loan options before you start touring homes. You’ll walk into open houses with realistic expectations about what you can afford, what repairs you can shoulder, and how much cash you need to close.

“Essentially, the classes try to provide buyers with the tools to make smart, confident decisions, rather than charging into the marketplace in the dark,” said Cohen. “The greatest advantage is confidence: consumers go out knowing exactly what to do and how to protect their investment, which can prevent thousands of dollars and a great deal of worry down the road.”