Preparing for Homeownership: Financial Education

By: American Property Owners Alliance Apr 25

Apr 25

2023

Buying a home is a significant financial decision that requires careful preparation. Financial education is key to helping you make a property investment that will build your wealth for years to come. The American Property Owners Alliance helps prospective owners like you develop skills that will help you at every step of the home buying process, from determining what you can afford to saving for a downpayment and securing the best mortgage rate.

Here are some financial education resources available to you at low or no cost to set you up for financial success at every step of the home buying journey.

Free Financial Education

Many government websites offer free resources on personal finance, such as the Federal Reserve’s Consumer Information website offering reliable advice on building and protecting your credit, setting up checking and savings accounts and more. There’s even a guide to all federal financial education resources. Your city and state likely offer free financial education programs and resources, which you can find on official government websites.

Budgeting Tools

Using a savings goal calculator and creating a budget to meet your goal each month can help you understand how long it will take you to save for a down payment. The Financial Literacy and Education Commission offers hundreds of free tools to help you manage your finances, especially when it comes to debt repayment and budgeting. Check out their website to access budget worksheets, tax withholding calculators, and debt repayment calculators that show how long it will take to pay off your debt based on different monthly payment scenarios.

Managing Your Student Debt

Student debt is cited as one of the biggest barriers to homeownership. Understanding your student loan repayment options and the assistance available to you can help you avoid fees and excess interest, putting more money in your pocket for a down payment on a home. The Federal Student Aid resource hub provides a one-stop shop to learn about student loan repayment based on where you are in the process.

Pre-Homeownership Counseling

There are U.S. Department of Housing and Urban Development approved counselors across the country that provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues at low or no cost to homeowners. Learn more about these services and find a housing counselor near you.

Guidance from REALTORS®

Realtors are licensed real estate agents who are held to a higher ethical standard than other brokers or real estate agents. They are members of the National Association of REALTORS ® and have access to housing market insights and data that other agents may not. Once you’ve saved for your down payment and are ready to explore mortgage lending options, a REALTOR® can help you navigate this process and make a smart property investment that will put you in the best position to build wealth. You can use this tool to find licensed REALTORS® in your area.

Join The Alliance

Americans already face growing barriers to homeownership, from low housing supply to rising mortgage rates. Homeownership is a major component of wealth building and upward mobility, and action must be taken now to improve equity in homeownership. This starts with bolstering financial education and advancing housing policy solutions to set up first-time buyers for success. Join The American Property Owners Alliance and follow us on Twitter and Facebook to get ongoing support and updates, no matter where you are in your homeownership journey