Credit counseling is something that may be needed if you are in a rough situation, or if you are looking to take on some housing debt for the first time. There is nothing wrong with credit counseling, and if you embrace the concept, it can only be a benefit to you moving forward as you will get the knowledge needed to ensure success. Credit counseling is normally given by approved agencies with the U.S. Department of Housing and Urban Development or HUD. (www.hud.gov) These approved counselors are there to guide you to achieve whatever type of housing goals you may have. In the following paragraphs we will go through the different types of credit counseling and how they can help you.
In the pre-purchase credit counseling, you can expect to learn how to develop good financial habits which will allow you to realize how much home you can afford and what that payment will be every month. You will work with your counselor to ensure you are educated on the ins and outs of homeownership and how that translates to your finances. Your counselor will also go over with you the different types of loan programs and how your credit worthiness affects the approval process. If by chance you previously owned a home and lost it due to financial strain, your credit counseling will go over what actions took place and how t prevent them going forward. At the end of the course you should obtain a study guide or packet with everything you went over so you can reference it at later dates.
When dealing with credit counseling due to delinquency either with your mortgage or your landlord if you are renting, there are similar items that will be gone over to ensure you are informed on what your next steps should be. The start of this course will see you and the counselor take a deep dive into your finances and track your spending. From here, you will work together to create your current monthly budget and what the subsequent budget should look like to get you back into good financial standing. If it is still determined that you simply cannot afford to make your mortgage payments, you might do some research on possibly refinancing your home to obtain a lower payment or you might have to end up going into forbearance. Your counselor will work with you to determine what decision makes the most sense to you financially, and from here you can go about making your decision.
In the homebuyer course of credit counseling you will dive into what other types of scenarios you will encounter with your home ownership. This differs from the pre-purchase counseling as this course will take a look at choosing a real estate agent, knowing your HOA fees, how loan closing are carried out, and how you would bring money to the closing of your home for closing costs. This will also help you with knowledge on how to pay for and manage your loan after your loan closes and ensure you have a proper budget in place to promote timely payments.
In closing, credit counseling isn’t only for people in bad financial situations but can be for just about anyone. There is no shame in going to a credit counseling course as you will deal with a HUD approved counselor who is an expert in the field of home ownership. Make sure you take these courses seriously and save all your materials. If you’d like to know more about credit counseling, reach out to me at 888-900-1020, email me at firstname.lastname@example.org, visit my website www.loanconsultants.org. I look forward to working with you!