The decision to purchase a property can be an expensive decision in terms of money. Regardless of whether it’s your first time purchasing a house, you are experiencing some type of financial difficulty, you are renting now but considering a move to homeownership as a way to escape high rents, or you are struggling with foreclosure, there will come a time when you will need reliable information about how to go through the process.
While other organizations (non-profit) may earn income by recommending specific loans and/or products to consumers for purchases such as those described above, HUD-Certified Housing Counselors provide non-biased education-based advice to consumers so they have an understanding of the different options available to them; these services do not include any type of sales pressure.
Why HUD Certification Matters
The U.S. Department of Housing and Urban Development (HUD), developed a housing counseling program so that all consumers will have an opportunity to receive advice from trained and trusted advisors. All HUD certified counselors are required to complete HUD training, obtain HUD Certification, and continue their knowledge of HUD guidelines for housing, as well as other financial services.
All HUD certified counselors focus on educating their clients about options, in addition to the potential benefits and risk associated with those choices. Services typically include:
- First-Time Home Buying Guidance
- Budgeting & Financial Planning
- Improving Credit
- Preventing Mortgage Defaults
- Counseling for Renters
- Counseling for Reverse Mortgages
- Assistance in Recovery from Disasters
The wide-ranging approach will enable the counselor to create a customized plan for each individual based on their specific situation as opposed to trying to apply an across-the-board solution.
How Counselors Provide Objective Guidance
A hallmark of HUD-approved counseling is being unbiased. The primary focus of a counselor is always in their clients’ best interest. When providing financial data, a counselor does so objectively. No lender or product is promoted by the counselor.
Prior to discussing mortgage qualifications for a client, they will be asked to provide a comprehensive list of all their monthly income, expenses, debts, savings, and long-range goals. While the overall goal is to determine if the client has enough money to qualify for a home mortgage, it also includes determining if there are any other factors which would indicate that owning a home would not be the most financially savvy option at this time.
The Mission of Nonprofit Credit Counseling
A person’s ability to afford their home is influenced by far more than whether or not they meet requirements for a mortgage. Their past credit performance, the amount of debt they carry, how effectively they manage their money (budget), how much money they save each month, how they spend what little disposable income they may have all contribute significantly to their ability to afford their mortgage. The primary mission of Nonprofit Credit Counseling Agency is to provide assistance to people who need this support to build a strong foundation from which they can begin to plan for the future and ultimately achieve their dreams.
Support Before, During, and After Buying
HUD-approved counseling services support homeowners at every stage of housing. For those planning to purchase a home, they can get information about mortgage options, down payments, closing costs, insurance, taxes, and maintenance so that they are not surprised after moving in. Current homeowners who are experiencing hardship may obtain foreclosure prevention counseling including budget reviews and assistance in communicating with their mortgage servicer.
Finding A Trustworthy Housing Counseling Agency
Prior to disclosing personal financial data, ensure that the agency is formally recognized as HUD approved. Additionally ask if counselors have received certification, what services they offer, are sessions held in confidence, and are there any fees. Be aware of possible red flags related to guaranteed approval, up front fee requirements, or pressure to sign a contract quickly.
Conclusion
Your ability to make informed choices regarding your housing needs affects your overall financial well-being for many years. Therefore, having trustworthy guidance is essential. HUD-Certified Housing Counseling Agencies offer objective educational opportunities and practical methods of addressing issues without sales pressure. Whether you are looking for advice in purchasing your first home, need assistance in managing debt, require assistance in avoiding foreclosure or want to establish financial stability, utilizing a Non-Profit Credit Counseling Agency (which also provides HUD-Certified Counseling) allows for a full scope of support toward establishing confident, lasting homeownership.
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