To assist clients preparing for homeownership, it is important for housing counselors to understand the homebuying process, including financial components, homeowner responsibility, and mortgage regulations. In this module, you’ll learn how to evaluate clients’ readiness to purchase a home. You’ll also learn about professionals involved in the selection and purchase of a home, as well as the financing process. Then, to help clients protect themselves against abusive practices, you’ll examine various mortgage documents and regulations in the lending industry. Lastly, you’ll learn about how clients can protect their property and investment by purchasing homeowners insurance.
By the end of this module, counselor will be able to:
- Evaluate a client’s readiness to purchase a home through discussion of income, credit, savings, and homeowner responsibility.
- Demonstrate knowledge about the process of selecting and purchasing a home, as well as the team of professionals needed.
- Comprehend the process involved in obtaining financing, including the selection of a lender and understanding of loan products.
- Apply knowledge of common abusive lending practices and loan scams to help the client avoid similar situations.
- Apply knowledge of mortgage regulations and lender disclosures, including the Real Estate Settlement Procedures Act (RESPA), Truth in Lending Act (TILA), Good Faith Estimate (GFE), and Equal Credit Opportunity Act (ECOA) to a discussion about how these laws relate to a client’s specific circumstances.
- Evaluate a client’s completed Uniform Residential Loan Application (Form 1003) for any general deficiencies.
- Explain insurance terms and concepts of at least three types of insurance policies to be able to identify the risk that is mitigated by each type of insurance policy.