October 2, 2024 • 25 mins
We sit down with Heather Bowman, the manager of Education and Housing Counseling for Finally Home!, to discuss the power of education for homebuyers and homeowners throughout the purchase process and beyond. Heather unpacks the advantages of traditional homebuyer education, post-purchase education and life-of-loan counseling, emphasizing how these resources equip families with the tools needed to navigate the complex homeownership journey.
In this episode, we discuss the:
- Best time for borrowers to take an education course
- Critical differences between homebuyer education and housing counseling
- Trend toward accessible online education and counseling
- Importance of post-purchase education for sustainable homeownership
Thanks for listening to Mortgage Connects, an MGIC podcast. If you have questions, comments, or want to get involved, send an email to mortgageconnects@mgic.com.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Concepcion Guerrero (00:04):
Welcome to Mortgage Connects by MGIC,
bringing you the latest insightsfrom top mortgage professionals
around the industry.
I'm your host, oncepcionGuerrero.
In today's episode, we're goingto explore the ways homebuyer
education programs benefit bothmortgage lenders and borrowers.
That's where our guest todaycomes in, eather Bowman, manager
(00:25):
of Education and HousingCounseling with Finally Home,
finally Home's homebuyereducation course provides a
solid foundation forunderstanding the homebuying
process.
By taking this course, futurehomebuyers gain the knowledge
and tools they need to be asuccessful homeowner.
Welcome, heather, glad to haveyou join us today.
Heather Bowman (00:43):
Thank you, Concepcion.
I'm so happy to be here and toshare more information about
Finally Home! and our serviceswith all of the community that's
out there that's supporting theMGIC and the mortgage industry
as a whole, excellent.
Concepcion Guerrero (01:00):
Well, I'm excited for the topic on hand as
well, because I think it's onethat many of our listeners will
learn a couple of things when itcomes to homebuyer education.
MGIC is a proud partner ofFinally Home.
Due to our belief, the power ofhomebuyer education helps set
future homeowners up for success.
Let's start by having you tellus more about Finally Home and
(01:23):
what sets them apart from thecompetition.
Heather Bowman (01:26):
Well.
Thank you.
We really appreciate thepartnership and the support that
MGIC provides for thesevaluable services.
At Finally Home, we're proud tooffer a unique and innovative
approach to homeownershipthrough education and housing
counseling services.
We've created comprehensiveresources to help individuals
(01:46):
and families achieve theirhousing dreams and keep them.
We really want to help peoplethroughout their entire housing
journey, so Findly Home providesa range of services.
The main feature is ourfirst-time home buyer education
course, which meets nationalindustry standards and is
provided by a HUD-approvedhousing counseling agency.
(02:09):
We've built the online coursefrom the ground up to meet the
overall needs of homebuyers.
In addition to homebuyereducation, we also offer
services such as post-purchaseeducation and in-house
one-on-one housing counseling,which is for all types of
housing needs, includingpre-purchase all the way through
(02:30):
reverse mortgage counseling.
I'd say the first thing thatsets Finally Home apart from
other providers is our staff andour overall customer support
that we provide.
Our team is made up ofexperienced housing
professionals that havepractical knowledge of the
challenges individuals andfamilies face when trying to
(02:50):
meet their housing goals, andwe're versed in the mortgage
industry and stay up to date onthe real estate market.
And we're accessible Ifsomebody has questions
throughout the homebuyereducation course or throughout
their housing journey.
We're here to help.
We're accessible by phone, livechat, email.
(03:12):
I really think that sets usapart, because we have staff
available to help people whenthey need it.
Secondly, our curriculum coversall aspects of homebuying, from
affordability of homeownershipto information about loan types,
closing costs, budgeting, homemaintenance.
By educating homebuyers beforethey purchase, we're setting
(03:34):
them up for success.
In addition to the educationcourse, we also offer life of
loan housing counseling, whichmeans that our clients have
access to ongoing support andguidance for the duration of
their loan or throughout theirhomeownership journey.
This can be a huge benefit forpeople new to homeownership or
who may encounter unexpectedchallenges along the way.
(03:56):
Our housing counselors areavailable to provide guidance on
everything from home repairs toongoing budgeting, and they can
really help the clientsnavigate other issues as they
come up too.
So we're committed to ongoingupgrades and improvements, and
this is another reason that setsus apart with home buyer
(04:19):
education is that we'reregularly updating our program
and services to reflect thechanging needs of our clients
and the mortgage industry.
This means that our buyers andhomeowners alike can be
confident that they're gettingthe most up-to-date information
and support available.
We think it's a value add tothe industry as a whole and to
anyone needing housingassistance.
Concepcion Guerrero (04:42):
Thank you, Heather, for going a little bit
deeper into the services, thewide range of services that
Finally Home offers, and also,you know, mentioning the team,
you know, behind all thatsuccess, all that effort and all
the magic that comes aboutFinally Home.
But, heather, tell us what isyour role at Finally Home and,
most importantly, what do youlove about it the most?
Sure?
Heather Bowman (05:05):
My role is really to oversee our homebuyer
education and housing counselingservices.
I work on program development,partner and consumer relations
and I identify areas where wecan improve our overall services
and make those changes happen.
We really value consumerfeedback and I'm often going out
(05:26):
and soliciting feedback andtrying to implement those
suggestions that we've receivedfrom both participants housing
counseling clients, as well asour industry partners to improve
(05:47):
the course and our offeringsand any opportunity that we have
to add value and content andimprove the user experience.
We're doing that.
What I love most about my roleoh, there's so much.
I really am fortunate.
I have such a great opportunitythat I've had with with Finally
Home, really knowing that theproducts and services that I'm
(06:09):
working on on a daily basis arehelping people to reach their
housing goals.
It's it's incredibly rewarding.
I'm lucky to have a team that'sinvested in helping others and
I feel like, at the end of theday, we're making a difference.
We're helping people throughtough times.
(06:30):
We're helping people have thehappiest moment of their lives
when they're getting into theirfirst home and they're able to
create a foundation that'ssecure and safe and sustainable.
It's pretty impressive and I'mvery fortunate.
Concepcion Guerrero (06:53):
That's amazing.
That's amazing that you get toexperience all those the
feelings, the makinghomeownership a possibility up
front with those customers thatyou help.
But, Heather, now is it safe tosay that homebuyer education
has a huge impact on homebuyers,really no matter what stage of
(07:15):
their home buying journey theyare in?
But tell me, when would you saywould be the best timing to
receive or go through thehomebuyer education?
Heather Bowman (07:25):
Sure.
Well, I always say the earlierthe better, but honestly it
really just depends on numerousfactors that are influencing
that individual that's lookingto buy a home.
You know, it can be really hardbecause a lot of times people
don't know that our servicesexist until they've already put
(07:48):
an offer in on the property andthen the lender calls them up
and says oh, by the way, theloan product that you're getting
requires homebuyer education,and so we don't like to see that
.
That's not ideal.
We want people to have theeducation and the resources up
front so they can really beprepared for what they're
(08:12):
getting into.
Although I strongly believethat borrowers at any stage will
gain knowledge from our course,it's going to be much more
useful if they take it beforethey start the process.
The one concern we often hearis that people wish they would
have started much earlier,ideally well before they started
(08:32):
shopping for a home.
So you know, we reallyencourage our lenders and our
realtor partners to let theirfirst time homebuyers know that
Finally Home is available assoon as they start working with
them.
You know, it's a great tool forthe lenders and realtors and
other industry professionalsbecause it really can make for a
(08:56):
much smoother experience forboth the homebuyer and the
industry professionals.
When the buyer understands theprocess upfront and knows what
to expect, really it's a win-winfor everybody.
So really, to answer yourquestion, I would say the ideal
time I would say would be aboutsix months before they want to
buy.
(09:16):
This gives buyers the time thatthey need to prepare their
finances, maybe work on creditscores if they need to improve
them a little bit.
They have time to do someresearch and then really take
the time to make educateddecisions on what they want to
buy, where they want to buy andthe resources that they need.
(09:38):
So sometimes people need lesstime, some people need more, but
really six months seems to be agood benchmark.
And, as I mentioned earlier,Finally Home is always working
on ways to improve our offeringsand one of the areas that we've
seen interest in is overallfinancial literacy.
So our Finally Home first timehomebuyer education course it
(10:01):
covers budgeting and credit.
But we've really seen aninterest in more of an in-depth
offering on budgeting and creditand overall financial literacy.
So I'm pleased to announce thatFinally Home will be launching
a new financial literacy courseto add to our lineup of services
(10:24):
this fall and we see this as aresource to help those needing a
little bit more assistance toget prepared for homeownership
or really just to help them intheir housing journey, and we
think it's a great place tostart when maybe homeownership
might be a few years out andwe'll be able to integrate some
(10:48):
of the tools that were offeredin financial literacy to boost
our finally home course as well.
So we're really excited aboutthat.
Concepcion Guerrero (10:57):
Now let's talk more about those, that of
who receives the homebuyereducation.
Now, you mentioned counselingis provided in either English or
Spanish.
So I'm curious do you go aboutoffering the training
differently to either set ofgroup due to the language
differences?
Heather Bowman (11:15):
No, we've really tried make the course as
interchangeable as possible.
We want Spanish speakers tohave the same exact experience
with Finally Home that Englishspeakers receive, and so we have
worked to make sure that ittruly is an interchangeable
experience between English andSpanish.
(11:39):
Now when it comes to one-on-onecounseling that's going to be
individualized for the clientthemselves.
So that's a bit different.
And there seems to be in theindustry a lot of confusion out
there between what thedifference of education and
housing counseling is.
Many people think it's the samething, but it's really not.
(12:02):
So just to clarify for ouraudience the purposes of home
buying and for the purposes ofhome buying and meeting lending
requirements, homebuyereducation is a class that covers
the home buying process andthat can be taken either in
person or online.
Our Finally Home first timehomebuyer education course is
(12:23):
just that.
We provide an online class thatcovers the whole process and
then at the end of the class thegraduates receive a certificate
of completion that they canthen provide to their lender to
meet homebuyer education loanrequirements.
But overall, education isprovided as a set curriculum and
it's more at a higher level.
(12:44):
On the other hand, our housingcounseling services is working
with a housing counselor toreceive one-on-one
individualized assistance.
So this can be done in person,over the phone, via Zoom.
Housing counselors help clientscreate an action plan to meet
their housing needs and goals.
(13:04):
So if the goal is homeownership, then a housing counselor can
help someone with debt ratios orimproving their credit score.
It really just depends uponwhat that individual's goals or
needs are.
And then that's the great thingabout the one onone housing
counseling is it's customized tothat individual person.
(13:26):
So at Finally Home, we offerboth of these services.
We have the first-timehomebuyer education course, but
then we also offer thatone-on-one assistance as a
complement to anyone needing alittle bit more help.
The great thing is, ourcounselors can help all
throughout someone'shomeownership journey.
So whether it's when they'refirst starting out with renting,
(13:49):
preparing for home buying, orafter they've purchased and
they've been in the home for awhile, or even at the end of
their homeownership down theroad, when they're looking at
downsizing, or maybe they'relooking for a reverse mortgage,
Our services can help with thatas well.
(14:10):
And again, all of theseservices are available in both
English and Spanish.
Concepcion Guerrero (14:17):
Well, nowadays the home buying journey
looks different for everybody.
I've heard cases where the homebuyer never really meets their
loan officer in person, sincereally all that communication is
done electronically.
Do you see something similarwhen it comes to the preference
of those going through the homebuyer education process, and has
virtual training reallysuperseded the traditional
(14:40):
in-classroom method?
Heather Bowman (14:42):
Yes, absolutely.
Online on-demand training, wefound, is preferred.
Essentially, since 2020 withCOVID, a lot of the preference
has really changed to moreonline.
It's also a lot easier forpeople, especially with busy
(15:06):
schedules, and whether it'sconvenience, accessibility, it's
easier for people in ruralareas across the country.
If they can't drive to a liveclass site, then the online
really is preferred.
It can be reduced distractionsbecause people can take the
class at their own time, youknow, after they've got their
(15:31):
household settled and when theyhave time to focus on it.
Online education can be a greattool for homebuyers.
You know, we see the difference.
You know, a lot of times peopleare audio learners and they
learn better in a classroomenvironment.
So we've tried to make thecourse as interactive and fun as
(15:55):
possible.
Plus, we've added an audiocomponent to the course so that,
as people are going through andworking through the lessons,
that they can listen to it aswell.
So this provides a reallyquality learning experience.
Whether you're a visual learneror an audio learner, you have
both options.
And then, when people registerto take the course, we give them
(16:19):
the option to get a textbookmailed to them, which is
essentially the course rolledinto a book, and, if they'd like
a paper copy, we'll send thatto them, or they have the option
of downloading it to theircomputer at any point during
taking the course.
This gives them some additionalresources that they can refer
(16:42):
to.
Now, digital is great, butsometimes you need a real person
, and so that's why we've workedreally hard with our staffing
and with our model to make surethat we meet the needs of all of
our students.
So we've added things like livechat.
We have housing counselors thatare available to provide
(17:02):
support when people need it, andwe just want to make sure that
we're accessible for all.
Concepcion Guerrero (17:10):
Thank you, Heather.
Now my next question is arounda myth that many really assume
housing counseling is neededonly when you're ready to buy a
house, or really for those thatit's a requirement for.
Can you share some of theobstacles you see from those
going through the counseling,and how does Finally Home help
(17:32):
them not only achieve the homeownership dream but really also
make sure they continue to keepthe home post-purchase?
Heather Bowman (17:41):
Sure, that's a great question, uh, and it's
incredibly important.
Um many people see buying ahome and moving in as the end
goal.
Um, it's.
There's so much going into justgetting into that home to begin
with.
Um many people don't realizethat there's a lot that goes on,
(18:02):
goes into owning andmaintaining that home.
So don't get me wrong it'sincredibly rewarding, but it's
important to be realistic andhave the tools needed to succeed
at owning.
There's always going to beongoing maintenance and things
break when people least expectit.
Um, I example, my microwavebroke last week and we had to
(18:26):
deal with that.
I mean, it's just there's stuffthat comes up all the time.
We all know that, but with ourcourse we try to prepare people
for that.
But what we found during thehome buying process is that
people really are focused onclosing.
Thinking about obstacles sixmonths to a year, two years down
(18:47):
the road, really isn't on theradar for most people when
they're buying.
So I would say probably themost common obstacle new
homeowners face is adjusting toa new budget, budget.
Utilities typically will varyand a lot of times there's added
(19:08):
utilities that people weren'tpaying for when they were
renting, that they're nowresponsible for and then getting
comfortable with your mortgagepayment.
Once the taxes and insuranceare added into that monthly
payment, that can be quite anadjustment.
Another common obstacle peopleface is unplanned expenses.
When something breaks whenyou're renting like if you have
(19:31):
a plumbing issue, you callmaintenance or you call your
landlord and they come and theyfix it and typically you're not
charged for that.
But once you own your home,everything is on your shoulders
to handle, which is okay andit's super rewarding because you
can do whatever you like withyour home.
But it can be an obstacle ifyou're not prepared.
(19:54):
So we talk about having anemergency budget and finally
home.
But it really is incrediblyimportant once you own your home
, having just a little bit extraset aside to cover emergencies
can really make or break yourbudget.
So to address this, a few yearsago we saw this as a concern
for new homeowners.
So what we did is we built apost-purchase module called the
(20:18):
Homeowners Toolkit and this is afree resource that becomes
available as soon as someonefinishes.
Finally home, and basicallyit's a one-stop resource that
provides practical informationand answers to questions to
assist new and experiencedhomeowners.
So topics include financialmanagement, disaster
(20:38):
preparedness, budgeting, homemaintenance, repair insurance,
staying current on your mortgage, refinancing, selling a home,
creating an emergency budget thelist goes on.
And then, of course, foradditional help, we always have
the one-on-one housingcounseling, which is available
(20:58):
regardless of how long you'vebeen in that home.
So this is always a greatresource for people planning for
a big expense, major repair orany unplanned setbacks.
But overall, I would say thatour resources are just as
important post-purchase as theyare pre-purchased.
Concepcion Guerrero (21:19):
Now let's talk about the relationship
between Finally Home and thelenders.
Just hearing the vast majorityof education you offer and
resources alongside with that, Ienvision the loan officers, who
are the ones that really havethe boots on the ground, work
closely with Finally Home.
So what does the relationshipbetween the loan officer look
(21:40):
like and Finally Home, and howare they able to leverage the
resources that you offer withthe homebuyers for additional
guidance?
Heather Bowman (21:50):
Sure, so we really have a great relationship
with lenders.
We work closely with lendersand brokers across the country
to help their clients meet loanrequirements as well as to
provide additional assistance.
I would say that Finally Homeis a tremendous tool for lenders
to have as a resource and areferral for their clients.
(22:11):
We've had lenders share with usthat their clients really have
appreciated the referral toFinally Home, have appreciated
the referral to finally homebecause it's helped them by
solidifying the information thatthe lender and that the lenders
were providing them.
Essentially, in a lot of casesit provides peace of mind for
(22:32):
the transaction because they'regetting that same information
that the lender is providingthem from a trusted, independent
third party.
So they're solidifying thatinformation and it's helping to
ease their nerves and help withthe transaction as a whole.
(22:54):
I'd say when lenders refer theirclients to Finally Home, it
gives them the ability to takethe time that they need to
educate themselves and then askadditional questions of the
lender.
It helps prepare the borrowerand in many cases can make for a
much smoother transaction foreverybody involved.
When borrowers are prepared,they know what to expect and
(23:18):
really lenders appreciate thatno-transcript.
(23:49):
When lenders have borrowersneeding extra help, Finally Home
.
We're here, our housingcounselors can provide ongoing
assistance to help them getmortgage ready and they'll end
up going back to their lenderand it'll be a great transaction
.
We found lenders reallyappreciate that partnership.
(24:12):
The extra help can really makea loan go through and can set
the borrower up for success longterm go through and can set the
borrower up for success longterm.
And when a borrower succeedsand is happy, it creates trust
between them and their lenderand they're more inclined to
provide referrals to friends andfamilies.
They tend to come back to thatsame lender because they trust
(24:34):
them and then, down the roadthey want to buy or refinance.
Concepcion Guerrero (24:42):
They've got ongoing business.
Now, Heather.
To wrap things up, are yourservices available in other
states and, if so, what would bethe best way for those
interested in learning moreabout Finally Home?
Get in contact with you orsomeone from your team.
Heather Bowman (24:59):
Sure.
So Finally Home is accessibleanywhere in the United States.
People can access the courseand learn more about our
services at www.
finallyhome.
org.
The course is available anytimeand we can be reached at
877-695-2655.
Concepcion Guerrero (25:23):
Perfect.
Thanks again, Heather.
That brings us to the end ofthis Mortgage Connects episode.
For a recap of this episode anda quick access to related
content, visit MortgageConnects.
com.
There you can subscribe foremail alerts so you'll be among
the first to know about newepisodes.
Thank you for tuning in.
Welcome to Mortgage Connects by MGIC,
bringing you the latest insightsfrom top mortgage professionals
around the industry.
I'm your host, oncepcionGuerrero.
In today's episode, we're goingto explore the ways homebuyer
education programs benefit bothmortgage lenders and borrowers.
That's where our guest todaycomes in, eather Bowman, manager
(00:25):
of Education and HousingCounseling with Finally Home,
finally Home's homebuyereducation course provides a
solid foundation forunderstanding the homebuying
process.
By taking this course, futurehomebuyers gain the knowledge
and tools they need to be asuccessful homeowner.
Welcome, heather, glad to haveyou join us today.
Heather Bowman (00:43):
Thank you, Concepcion.
I'm so happy to be here and toshare more information about
Finally Home! and our serviceswith all of the community that's
out there that's supporting theMGIC and the mortgage industry
as a whole, excellent.
Concepcion Guerrero (01:00):
Well, I'm excited for the topic on hand as
well, because I think it's onethat many of our listeners will
learn a couple of things when itcomes to homebuyer education.
MGIC is a proud partner ofFinally Home.
Due to our belief, the power ofhomebuyer education helps set
future homeowners up for success.
Let's start by having you tellus more about Finally Home and
(01:23):
what sets them apart from thecompetition.
Heather Bowman (01:26):
Well.
Thank you.
We really appreciate thepartnership and the support that
MGIC provides for thesevaluable services.
At Finally Home, we're proud tooffer a unique and innovative
approach to homeownershipthrough education and housing
counseling services.
We've created comprehensiveresources to help individuals
(01:46):
and families achieve theirhousing dreams and keep them.
We really want to help peoplethroughout their entire housing
journey, so Findly Home providesa range of services.
The main feature is ourfirst-time home buyer education
course, which meets nationalindustry standards and is
provided by a HUD-approvedhousing counseling agency.
(02:09):
We've built the online coursefrom the ground up to meet the
overall needs of homebuyers.
In addition to homebuyereducation, we also offer
services such as post-purchaseeducation and in-house
one-on-one housing counseling,which is for all types of
housing needs, includingpre-purchase all the way through
(02:30):
reverse mortgage counseling.
I'd say the first thing thatsets Finally Home apart from
other providers is our staff andour overall customer support
that we provide.
Our team is made up ofexperienced housing
professionals that havepractical knowledge of the
challenges individuals andfamilies face when trying to
(02:50):
meet their housing goals, andwe're versed in the mortgage
industry and stay up to date onthe real estate market.
And we're accessible Ifsomebody has questions
throughout the homebuyereducation course or throughout
their housing journey.
We're here to help.
We're accessible by phone, livechat, email.
(03:12):
I really think that sets usapart, because we have staff
available to help people whenthey need it.
Secondly, our curriculum coversall aspects of homebuying, from
affordability of homeownershipto information about loan types,
closing costs, budgeting, homemaintenance.
By educating homebuyers beforethey purchase, we're setting
(03:34):
them up for success.
In addition to the educationcourse, we also offer life of
loan housing counseling, whichmeans that our clients have
access to ongoing support andguidance for the duration of
their loan or throughout theirhomeownership journey.
This can be a huge benefit forpeople new to homeownership or
who may encounter unexpectedchallenges along the way.
(03:56):
Our housing counselors areavailable to provide guidance on
everything from home repairs toongoing budgeting, and they can
really help the clientsnavigate other issues as they
come up too.
So we're committed to ongoingupgrades and improvements, and
this is another reason that setsus apart with home buyer
(04:19):
education is that we'reregularly updating our program
and services to reflect thechanging needs of our clients
and the mortgage industry.
This means that our buyers andhomeowners alike can be
confident that they're gettingthe most up-to-date information
and support available.
We think it's a value add tothe industry as a whole and to
anyone needing housingassistance.
Concepcion Guerrero (04:42):
Thank you, Heather, for going a little bit
deeper into the services, thewide range of services that
Finally Home offers, and also,you know, mentioning the team,
you know, behind all thatsuccess, all that effort and all
the magic that comes aboutFinally Home.
But, heather, tell us what isyour role at Finally Home and,
most importantly, what do youlove about it the most?
Sure?
Heather Bowman (05:05):
My role is really to oversee our homebuyer
education and housing counselingservices.
I work on program development,partner and consumer relations
and I identify areas where wecan improve our overall services
and make those changes happen.
We really value consumerfeedback and I'm often going out
(05:26):
and soliciting feedback andtrying to implement those
suggestions that we've receivedfrom both participants housing
counseling clients, as well asour industry partners to improve
(05:47):
the course and our offeringsand any opportunity that we have
to add value and content andimprove the user experience.
We're doing that.
What I love most about my roleoh, there's so much.
I really am fortunate.
I have such a great opportunitythat I've had with with Finally
Home, really knowing that theproducts and services that I'm
(06:09):
working on on a daily basis arehelping people to reach their
housing goals.
It's it's incredibly rewarding.
I'm lucky to have a team that'sinvested in helping others and
I feel like, at the end of theday, we're making a difference.
We're helping people throughtough times.
(06:30):
We're helping people have thehappiest moment of their lives
when they're getting into theirfirst home and they're able to
create a foundation that'ssecure and safe and sustainable.
It's pretty impressive and I'mvery fortunate.
Concepcion Guerrero (06:53):
That's amazing.
That's amazing that you get toexperience all those the
feelings, the makinghomeownership a possibility up
front with those customers thatyou help.
But, Heather, now is it safe tosay that homebuyer education
has a huge impact on homebuyers,really no matter what stage of
(07:15):
their home buying journey theyare in?
But tell me, when would you saywould be the best timing to
receive or go through thehomebuyer education?
Heather Bowman (07:25):
Sure.
Well, I always say the earlierthe better, but honestly it
really just depends on numerousfactors that are influencing
that individual that's lookingto buy a home.
You know, it can be really hardbecause a lot of times people
don't know that our servicesexist until they've already put
(07:48):
an offer in on the property andthen the lender calls them up
and says oh, by the way, theloan product that you're getting
requires homebuyer education,and so we don't like to see that
.
That's not ideal.
We want people to have theeducation and the resources up
front so they can really beprepared for what they're
(08:12):
getting into.
Although I strongly believethat borrowers at any stage will
gain knowledge from our course,it's going to be much more
useful if they take it beforethey start the process.
The one concern we often hearis that people wish they would
have started much earlier,ideally well before they started
(08:32):
shopping for a home.
So you know, we reallyencourage our lenders and our
realtor partners to let theirfirst time homebuyers know that
Finally Home is available assoon as they start working with
them.
You know, it's a great tool forthe lenders and realtors and
other industry professionalsbecause it really can make for a
(08:56):
much smoother experience forboth the homebuyer and the
industry professionals.
When the buyer understands theprocess upfront and knows what
to expect, really it's a win-winfor everybody.
So really, to answer yourquestion, I would say the ideal
time I would say would be aboutsix months before they want to
buy.
(09:16):
This gives buyers the time thatthey need to prepare their
finances, maybe work on creditscores if they need to improve
them a little bit.
They have time to do someresearch and then really take
the time to make educateddecisions on what they want to
buy, where they want to buy andthe resources that they need.
(09:38):
So sometimes people need lesstime, some people need more, but
really six months seems to be agood benchmark.
And, as I mentioned earlier,Finally Home is always working
on ways to improve our offeringsand one of the areas that we've
seen interest in is overallfinancial literacy.
So our Finally Home first timehomebuyer education course it
(10:01):
covers budgeting and credit.
But we've really seen aninterest in more of an in-depth
offering on budgeting and creditand overall financial literacy.
So I'm pleased to announce thatFinally Home will be launching
a new financial literacy courseto add to our lineup of services
(10:24):
this fall and we see this as aresource to help those needing a
little bit more assistance toget prepared for homeownership
or really just to help them intheir housing journey, and we
think it's a great place tostart when maybe homeownership
might be a few years out andwe'll be able to integrate some
(10:48):
of the tools that were offeredin financial literacy to boost
our finally home course as well.
So we're really excited aboutthat.
Concepcion Guerrero (10:57):
Now let's talk more about those, that of
who receives the homebuyereducation.
Now, you mentioned counselingis provided in either English or
Spanish.
So I'm curious do you go aboutoffering the training
differently to either set ofgroup due to the language
differences?
Heather Bowman (11:15):
No, we've really tried make the course as
interchangeable as possible.
We want Spanish speakers tohave the same exact experience
with Finally Home that Englishspeakers receive, and so we have
worked to make sure that ittruly is an interchangeable
experience between English andSpanish.
(11:39):
Now when it comes to one-on-onecounseling that's going to be
individualized for the clientthemselves.
So that's a bit different.
And there seems to be in theindustry a lot of confusion out
there between what thedifference of education and
housing counseling is.
Many people think it's the samething, but it's really not.
(12:02):
So just to clarify for ouraudience the purposes of home
buying and for the purposes ofhome buying and meeting lending
requirements, homebuyereducation is a class that covers
the home buying process andthat can be taken either in
person or online.
Our Finally Home first timehomebuyer education course is
(12:23):
just that.
We provide an online class thatcovers the whole process and
then at the end of the class thegraduates receive a certificate
of completion that they canthen provide to their lender to
meet homebuyer education loanrequirements.
But overall, education isprovided as a set curriculum and
it's more at a higher level.
(12:44):
On the other hand, our housingcounseling services is working
with a housing counselor toreceive one-on-one
individualized assistance.
So this can be done in person,over the phone, via Zoom.
Housing counselors help clientscreate an action plan to meet
their housing needs and goals.
(13:04):
So if the goal is homeownership, then a housing counselor can
help someone with debt ratios orimproving their credit score.
It really just depends uponwhat that individual's goals or
needs are.
And then that's the great thingabout the one onone housing
counseling is it's customized tothat individual person.
(13:26):
So at Finally Home, we offerboth of these services.
We have the first-timehomebuyer education course, but
then we also offer thatone-on-one assistance as a
complement to anyone needing alittle bit more help.
The great thing is, ourcounselors can help all
throughout someone'shomeownership journey.
So whether it's when they'refirst starting out with renting,
(13:49):
preparing for home buying, orafter they've purchased and
they've been in the home for awhile, or even at the end of
their homeownership down theroad, when they're looking at
downsizing, or maybe they'relooking for a reverse mortgage,
Our services can help with thatas well.
(14:10):
And again, all of theseservices are available in both
English and Spanish.
Concepcion Guerrero (14:17):
Well, nowadays the home buying journey
looks different for everybody.
I've heard cases where the homebuyer never really meets their
loan officer in person, sincereally all that communication is
done electronically.
Do you see something similarwhen it comes to the preference
of those going through the homebuyer education process, and has
virtual training reallysuperseded the traditional
(14:40):
in-classroom method?
Heather Bowman (14:42):
Yes, absolutely.
Online on-demand training, wefound, is preferred.
Essentially, since 2020 withCOVID, a lot of the preference
has really changed to moreonline.
It's also a lot easier forpeople, especially with busy
(15:06):
schedules, and whether it'sconvenience, accessibility, it's
easier for people in ruralareas across the country.
If they can't drive to a liveclass site, then the online
really is preferred.
It can be reduced distractionsbecause people can take the
class at their own time, youknow, after they've got their
(15:31):
household settled and when theyhave time to focus on it.
Online education can be a greattool for homebuyers.
You know, we see the difference.
You know, a lot of times peopleare audio learners and they
learn better in a classroomenvironment.
So we've tried to make thecourse as interactive and fun as
(15:55):
possible.
Plus, we've added an audiocomponent to the course so that,
as people are going through andworking through the lessons,
that they can listen to it aswell.
So this provides a reallyquality learning experience.
Whether you're a visual learneror an audio learner, you have
both options.
And then, when people registerto take the course, we give them
(16:19):
the option to get a textbookmailed to them, which is
essentially the course rolledinto a book, and, if they'd like
a paper copy, we'll send thatto them, or they have the option
of downloading it to theircomputer at any point during
taking the course.
This gives them some additionalresources that they can refer
(16:42):
to.
Now, digital is great, butsometimes you need a real person
, and so that's why we've workedreally hard with our staffing
and with our model to make surethat we meet the needs of all of
our students.
So we've added things like livechat.
We have housing counselors thatare available to provide
(17:02):
support when people need it, andwe just want to make sure that
we're accessible for all.
Concepcion Guerrero (17:10):
Thank you, Heather.
Now my next question is arounda myth that many really assume
housing counseling is neededonly when you're ready to buy a
house, or really for those thatit's a requirement for.
Can you share some of theobstacles you see from those
going through the counseling,and how does Finally Home help
(17:32):
them not only achieve the homeownership dream but really also
make sure they continue to keepthe home post-purchase?
Heather Bowman (17:41):
Sure, that's a great question, uh, and it's
incredibly important.
Um many people see buying ahome and moving in as the end
goal.
Um, it's.
There's so much going into justgetting into that home to begin
with.
Um many people don't realizethat there's a lot that goes on,
(18:02):
goes into owning andmaintaining that home.
So don't get me wrong it'sincredibly rewarding, but it's
important to be realistic andhave the tools needed to succeed
at owning.
There's always going to beongoing maintenance and things
break when people least expectit.
Um, I example, my microwavebroke last week and we had to
(18:26):
deal with that.
I mean, it's just there's stuffthat comes up all the time.
We all know that, but with ourcourse we try to prepare people
for that.
But what we found during thehome buying process is that
people really are focused onclosing.
Thinking about obstacles sixmonths to a year, two years down
(18:47):
the road, really isn't on theradar for most people when
they're buying.
So I would say probably themost common obstacle new
homeowners face is adjusting toa new budget, budget.
Utilities typically will varyand a lot of times there's added
(19:08):
utilities that people weren'tpaying for when they were
renting, that they're nowresponsible for and then getting
comfortable with your mortgagepayment.
Once the taxes and insuranceare added into that monthly
payment, that can be quite anadjustment.
Another common obstacle peopleface is unplanned expenses.
When something breaks whenyou're renting like if you have
(19:31):
a plumbing issue, you callmaintenance or you call your
landlord and they come and theyfix it and typically you're not
charged for that.
But once you own your home,everything is on your shoulders
to handle, which is okay andit's super rewarding because you
can do whatever you like withyour home.
But it can be an obstacle ifyou're not prepared.
(19:54):
So we talk about having anemergency budget and finally
home.
But it really is incrediblyimportant once you own your home
, having just a little bit extraset aside to cover emergencies
can really make or break yourbudget.
So to address this, a few yearsago we saw this as a concern
for new homeowners.
So what we did is we built apost-purchase module called the
(20:18):
Homeowners Toolkit and this is afree resource that becomes
available as soon as someonefinishes.
Finally home, and basicallyit's a one-stop resource that
provides practical informationand answers to questions to
assist new and experiencedhomeowners.
So topics include financialmanagement, disaster
(20:38):
preparedness, budgeting, homemaintenance, repair insurance,
staying current on your mortgage, refinancing, selling a home,
creating an emergency budget thelist goes on.
And then, of course, foradditional help, we always have
the one-on-one housingcounseling, which is available
(20:58):
regardless of how long you'vebeen in that home.
So this is always a greatresource for people planning for
a big expense, major repair orany unplanned setbacks.
But overall, I would say thatour resources are just as
important post-purchase as theyare pre-purchased.
Concepcion Guerrero (21:19):
Now let's talk about the relationship
between Finally Home and thelenders.
Just hearing the vast majorityof education you offer and
resources alongside with that, Ienvision the loan officers, who
are the ones that really havethe boots on the ground, work
closely with Finally Home.
So what does the relationshipbetween the loan officer look
(21:40):
like and Finally Home, and howare they able to leverage the
resources that you offer withthe homebuyers for additional
guidance?
Heather Bowman (21:50):
Sure, so we really have a great relationship
with lenders.
We work closely with lendersand brokers across the country
to help their clients meet loanrequirements as well as to
provide additional assistance.
I would say that Finally Homeis a tremendous tool for lenders
to have as a resource and areferral for their clients.
(22:11):
We've had lenders share with usthat their clients really have
appreciated the referral toFinally Home, have appreciated
the referral to finally homebecause it's helped them by
solidifying the information thatthe lender and that the lenders
were providing them.
Essentially, in a lot of casesit provides peace of mind for
(22:32):
the transaction because they'regetting that same information
that the lender is providingthem from a trusted, independent
third party.
So they're solidifying thatinformation and it's helping to
ease their nerves and help withthe transaction as a whole.
(22:54):
I'd say when lenders refer theirclients to Finally Home, it
gives them the ability to takethe time that they need to
educate themselves and then askadditional questions of the
lender.
It helps prepare the borrowerand in many cases can make for a
much smoother transaction foreverybody involved.
When borrowers are prepared,they know what to expect and
(23:18):
really lenders appreciate thatno-transcript.
(23:49):
When lenders have borrowersneeding extra help, Finally Home
.
We're here, our housingcounselors can provide ongoing
assistance to help them getmortgage ready and they'll end
up going back to their lenderand it'll be a great transaction
.
We found lenders reallyappreciate that partnership.
(24:12):
The extra help can really makea loan go through and can set
the borrower up for success longterm go through and can set the
borrower up for success longterm.
And when a borrower succeedsand is happy, it creates trust
between them and their lenderand they're more inclined to
provide referrals to friends andfamilies.
They tend to come back to thatsame lender because they trust
(24:34):
them and then, down the roadthey want to buy or refinance.
Concepcion Guerrero (24:42):
They've got ongoing business.
Now, Heather.
To wrap things up, are yourservices available in other
states and, if so, what would bethe best way for those
interested in learning moreabout Finally Home?
Get in contact with you orsomeone from your team.
Heather Bowman (24:59):
Sure.
So Finally Home is accessibleanywhere in the United States.
People can access the courseand learn more about our
services at www.
finallyhome.
org.
The course is available anytimeand we can be reached at
877-695-2655.
Concepcion Guerrero (25:23):
Perfect.
Thanks again, Heather.
That brings us to the end ofthis Mortgage Connects episode.
For a recap of this episode anda quick access to related
content, visit MortgageConnects.
com.
There you can subscribe foremail alerts so you'll be among
the first to know about newepisodes.
Thank you for tuning in.
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