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Why Homebuyer Education Can Be Your Mortgage Game-Changer

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How an Online Course Can Boost Your Confidence, Secure Assistance, and Impress Lenders

Thinking about buying your first home? Lately, you’ve been deep in Zillow scrolls, picturing weekend BBQs, or finally upgrading from your loyal (but low‑maintenance) plant to a real pet. Then record scratch you spot the reality check: a down payment the size of a small fortune, and the phrase ‘mortgage approval’ sends you straight into anxiety mode. If that hits a little too close to home, stick around you’re in the right place.

Let’s talk about one of the most underrated moves for first-time homebuyers: taking an online homebuyer education course. Spoiler alert: Not only does an online course help debunk myths surrounding the mortgage process, but it also opens doors to grants and down payment assistance that can save you thousands.

Homebuyer Education: Your Secret Weapon

Picture this: You’re about to enter the world of real estate where “points” have nothing to do with your rewards card, and “escrow” sounds more like a villain from a superhero movie. Having a guide makes all the difference.

A homebuyer education course gives you that lifelong friend who explains everything patiently, answers your questions (even the ones you thought were “dumb”), and helps you avoid rookie mistakes. For many grants and assistance programs, a completion certificate from an approved course is the golden ticket.

The Essentials You’ll Learn

  • How much home can you really afford? (It’s not just what Zillow or your lender say)
  • Credit score basics and how to boost yours like a boss
  • Understanding mortgage types, rates, and terms
  • Navigating the homebuyer process from “just looking” to “got the keys!”
  • Planning for closing costs and home maintenance
  • How down payment and closing cost assistance works (so you don’t miss out on “free money”)

Why Lenders and Grant Providers Care

Lenders and grant programs are a lot like that friend who wants to make sure you’re set up for success before they co-sign on your move. When you’ve completed a HUD-approved homebuyer education course, you’re telling them: “Hey, I did my homework, I understand the process, and I’m less likely to be overwhelmed down the road.”

  • Lenders like borrowers who are prepared. You’ll know what paperwork to expect, how to create a budget, and the questions to ask.
  • Grant providers are reassured that their help is going to someone who is ready for the challenges of homeownership.

Completing the course makes you more attractive as a borrower and applicant. In fact, for many down payment assistance programs, having a course certificate is required before they’ll hand you the keys to the kingdom (a.k.a. your new home).

Online, On Your Time: The Money Fit by DRS Course

Now, maybe you’re picturing an all-day boring lecture or a Saturday spent in a stuffy classroom. Happily, we live in the golden age of online education, where comfy pants and snacks are encouraged!

Money Fit by DRS offers a self-paced, HUD-approved online homebuyer education course designed for busy first-timers and it checks all the boxes:

  • Self-paced: Complete the course on your own schedule.

Squeeze in modules between Zoom calls, or binge the content Netflix-style. It’s your call.

  • 6-8 hour requirement: The program fulfills the standard education time needed for most lenders and assistance programs.
  • One low fee: The course costs $100 per household (not per individual) with possible discounts if you’re facing financial hardship.
  • Instant certificate: When you finish, you’ll receive your completion certificate immediately.
  • Widely accepted: The certificate is valid for most down payment assistance programs, grants, and participating lenders nationwide.
  • No extra hoops: No need to meet in person or by phone with an agency when you’re done and have finished the online course.

Phew! No more fear of “Did I miss a step?”

What Down Payment Assistance Programs Want

If you’re dreaming of a smaller down payment (or maybe no down payment at all), most programs will want you to:

  • Be a first-time homebuyer (did you know, even if you’ve owned in the past, you can count as “first-time” if you haven’t owned within the last three years?).
  • Meet income and purchase price limits based on the local area.
  • Buy a home to live in as your primary residence (no investment properties).
  • Complete an education course (yep, like the one we’re talking about).

Some programs offer grants (meaning you don’t have to pay the money back) or forgivable loans if you stay in the home for a certain number of years. A few programs, such as the pending Downpayment Toward Equity Act, propose help as high as $25,000 for eligible first-generationbuyers. While some national bills are still awaiting approval, there are thousands of local or state options that already exist and can be unlocked with your education certificate.

How Homebuyer Education Actually Helps Your Mortgage Approval

Let’s face it: mortgages involve paperwork, fine print, and terms that make even the most confident person double-check their vocab. Here’s how a course helps you stand out:

  • You’re less likely to make costly mistakes. Learning how mortgages, insurance, and closing costs work means fewer surprises.
  • You’ll prepare a stronger application. A polished budget and clear credit history show you’ve got it together.
  • Your loan officer will love you. You’ll come to meetings ready, organized, and asking smart questions (maybe even earning some bonus points).
  • You’ll keep more money in your pocket. By understanding what fees you can negotiate (yes, it’s possible), you might save at closing.

You know those reality TV shows where homebuyers are shocked by the “real cost” of their dream home? The real world is kinder with proper education, you’ll be the one calmly explaining things to friends over coffee.

Myth-Busting: “I’ll Just Wing It”

If you’re thinking, “I’ll skip the class and just figure things out as I go,” let’s gently tap the brakes together. Without homebuyer education:

  • You might miss out on thousands in financial help just because you lack the right certificate.
  • A lack of prep can slow down or even derail your mortgage approval.
  • Small missteps like budgeting errors or missing paperwork can add up to big headaches.

Think of education as “leveling up” before jumping into the game. Nobody’s got time to be the player stuck on level one for months.

Who Benefits from Homebuyer Education?

Nearly everyone!

  • Couples eager to buy their first home
  • Single buyers navigating an ocean of choices
  • People who never thought homeownership was possible
  • Anyone wanting to understand their finances, credit, and future better

A Real-Life Example (No Names, Just Facts)

Imagine a couple in their early 30s, juggling student loans, rent, and saving every spare dollar. They take a HUD-approved course online and learn about down payment assistance programs they never knew existed. They show their certificate, get approved for a $10,000 down payment grant, and buy their first home with confidence. On move-in day, instead of feeling panicked by the financial unknown, they’re celebrating with takeout pizza and streaming “The Office” reruns, all smiles instead of stress.

What’s It Like to Take the Course?

  • Short, engaging video lessons (no snooze-fests)
  • Easy quizzes along the way to reinforce what you’ve learned
  • Real-world examples and practical steps
  • Resources and tools you can download or reference later
  • Finish all modules at once or pause and pick up where you left off. Life is busy, and the course is flexible.

Why Education Is More Important Than Ever

With home prices and mortgage rates moving in ways that would make even a roller coaster blush, being prepared is crucial. In 2025, first-time buyers face both opportunities and challenges, including new grant proposals, changing credit guidelines, and more competition for houses. An education certificate prepares you to stand out in a crowded field, sort of like having VIP access to the mortgage approval club.

A Few More Tips for First-Time Buyers

  • Start the education course early, even before you talk to lenders or real estate agents.
  • Use your certificate to shop around. Some programs may offer better assistance than others.
  • Keep paperwork organized. Your future self will thank you.
  • Don’t get discouraged by jargon. Everyone starts as a beginner, and you’re now in the know.

Ready to Take the Next Step?

The coolest secret of all? The best time to start is right now while you’re still dreaming, planning, and window-shopping on your phone. An online HUD-approved course, like the one at Money Fit by DRS, costs just $100 per household (need-based discounts available), is completely self-paced, and unlocks real doors for first-time homebuyers. You’ll finish with the certificate most assistance programs require and be able to walk into the mortgage process with poise and confidence.

Get your homebuyer journey started! Visit Money Fit’s Housing Counseling page to register, learn more, and put your best step forward, because when it comes to buying your first home, knowledge isn’t just power. It’s the key to your own front door.

About the Author

Picture of Todd Christensen

Todd Christensen

As the education manager for Money Fit, author, speaker, and financial educator, Todd Christensen develops financial education programs and provides credit and debt counseling for individuals and groups around the country. In 2014, Todd published his first 5-star-rated book, Everyday Money for Everyday People based on stories and ideas he had heard in nearly 1,000 workshops he facilitated on budgeting, credit, debt reduction, saving, and identity protection.
Visit Todd Christensen's Page

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Client Credit Report Authorization

You hereby authorize and instruct Debt Reduction Services, Inc. (DRS, dba Money Fit by DRS) and/or its assigned agents to:
  • Obtain and review your credit report, and
  • Request verifications of your income and rental history, and any other information deemed necessary for improving your housing situation (for example, verifying your annual property tax obligations and homeowner’s insurance fees)
Your credit report will be obtained from a credit reporting agency chosen by DRS. You understand and agree that DRS intends to use the credit report evaluate your financial readiness to purchase or rent a home and/or to engage in post-purchase counseling activities and not to grant credit. You understand you may ask any questions pertaining to your credit report. However, while DRS will review the information with you, the company is not able to furnish you with a copy of your credit profile. You hereby authorize DRS to share your information from your credit report and any information that you provided (including any computations and assessments produced) with the entities listed below to help DRS determine your viable financial options.
  • Banks
  • Counseling Agencies
  • Debt Collectors
  • Landlords
  • Lenders
  • Mortgage Servicers
  • Property Management Companies
  • Public Housing Authorities
  • Social Service Agencies
Entities such as mortgage lenders and/or counseling agencies may contact your DRS counselor to evaluate the options for which you may be eligible. In connection with such evaluation, you authorize the credit reporting and/or financial agencies to release information and cooperate with your DRS counselor. No information will be discussed about you with entities not directly involved in your efforts to improve your housing situation. You hereby authorize the release of your information to program monitoring organizations of DRS, including but not limited to, Federal, State, and nonprofit partners for program review, monitoring, auditing, research, and/or oversight purposes. In addition, you authorize DRS to have your credit report pulled two additional times to conduct program evaluations. You also agree to keep DRS informed of any changes in address, telephone number, job status, marital status, or other conditions which may affect your eligibility for a program you have applied for or a counseling service that you are seeking. Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Client Privacy, Data Security, and Client Rights Policy

NOTE: This sheet is to inform new or returning clients about our services, records, fees, and limitations that may affect you as a consumer of our services. This form also discloses how we might release your information to other agencies and/or regulators. If you do not understand a statement, please ask a Debt Reduction Services (DRS) counselor for assistance.

Debt Reduction Services, Inc. (DRS) has put into place policies and procedures to protect the security and confidentiality of your nonpublic personal information. This notice explains our online information practices and how we use and maintain your information to conduct our financial education and credit counseling sessions and to fulfill information and question requests. This privacy policy complies with federal laws and regulations.

To provide our financial education and credit counseling services, we collect nonpublic personal information about you as follows: 1) Information we receive from you, 2) Information about your transactions with us or others, and 3) Information we receive from your creditors or a consumer reporting agency. We do not share this information with outside parties.

We use non-identifying and aggregate information to better design our website and services, but we do not disclose anything that could be used to identify you as an individual.

You hereby authorize DRS, when necessary, to share your nonpublic personal, financial, credit, and any information that you provided (including any computations and assessments produced) with the following entities in order to help DRS provide you with appropriate counseling or guide you to appropriate services: third parties such as government agencies, your lender(s), your creditor(s), and nonprofit housing-related and other financial agencies as permitted by law, including the U.S. Department of Housing and Urban Development.

To prevent unauthorized access, maintain data accuracy, and ensure the correct use of information, we have put in place appropriate physical, electronic, and managerial procedures to safeguard and secure the information we collect online. We limit access to your nonpublic personal information to our employees, contractors and agents who need such access to provide products or services to you or for other legitimate business purposes.

Debt Reduction Services, Inc. complies with the privacy requirements set forth in the HUD housing counseling agency handbook 7610.1 (05/2010), including the sections 2-2 Mc, 3-1 H(2), 3-3, 5-3 F, and Attachment A.5. At all times, we will comply with all additional laws and regulations to which we are subject regarding the collection, use, and disclosure of individually identifiable information.

  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

Please refer to DebtReductionServices.org for details of our services.

  1. Limits: Our services are limited to our normal weekday business hours. We do not provide individual counseling or education services after hours or on weekends, although our education courses are available 24/7.
  2. Fees: We do not charge fees for our financial management counseling and education. However, if you use them, you may have to pay for our Debt Management Program, Student Loan Counseling, Bankruptcy Certificate Services or certain financial education courses (homebuyer education, rental topics, fair housing, predatory lending, and post-purchase-non-delinquency including home maintenance and/or financial management for homeowners).
  3. Records: We maintain records of the services you receive, including notes about your progress or other relevant information to your work with us. You have the right to access and view your records by making a request to your counselor.
  4. Confidentiality: We respect your privacy and offer our services in confidence with the understanding that we may share such information with auditors and government regulators. Certain laws or situations may also lead to disclosing confidential issues, such as those involving potential child abuse or neglect, threats to harm self or others, or court subpoenas.
  5. Refusal of Services: You have the right to refuse services without any penalty or loss.
  6. Disclosure of Policies and Practices: You will be provided our agency disclosure statement.
  7. Sharing of Information: Sometimes we will need to contact other agencies or we may need to share your information, including your records, with other agencies or with regulators. We will do this only if you sign this form that gives us permission except for limited reasons; please see # 5 above for examples of such situations.
  8. Other: You have the right to be treated with respect by our staff, and we expect the same from you in return. We encourage you to always ask questions if something is not clear. We also encouraged you to express your thoughts and advocate throughout our services.

You acknowledge that this authorization will remain in effect for the duration of time that DRS serves as your housing counselor or financial education provider. You also acknowledge that should you wish to terminate this authorization, you will notify DRS in writing.

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Disclosure  Statement

NOTE: If you have an impairment, disability, language barrier, or otherwise require an alternative means of completing this form or accessing information about our counseling services, please communicate with your DRS representative about arranging alternative accommodations.

Program Disclosure Form

Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

Relationships with Industry Partners

Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

No Client Obligation

The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.
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Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

Rental, Fair Housing, Predatory Lending / HOEPA, Post-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. credit, budgeting, homeless prevention, debt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

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Housing Counseling and Education Fee Schedule  

Online EDUCATION Program Fees* 

eHome Homebuyer Education Course: $99 per household** 

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours) 

Online Workshops: $49 per participant 

  • Rental, Fair Housing, Predatory Lending Post-Purchase, HECM Family Member  
  • Approximately 1 hour each 

Other Self-Guided Financial Literacy Webinars: $0 

  • Credit, budgeting, homelessness prevention, debt prevention 
  • Approximately 30-60 minutes each 

One-on-one COUNSELING Fees* 

Pre-purchase Home Buying, Renter Issues, Homelessness, and Fair Housing: $0  

Post-purchase Ownership and Maintenance, HOEPA or Financial Management $75/hr  

Reverse Mortgage/HECM Counseling with Required Certificate $200 per household†  

Credit Report Fee Paid Directly by Client 

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable 

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page 

**Household is an individual or a couple  
†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there)