By Holly Van Woerkom
With increasing foreclosures and real estate scandals making headlines across the nation, first-time homebuyers may be intimidated by the prospect of signing for a home.
In an effort to help, Community Action Services of Food Bank is hosting a free homebuyer education course Apr. 19 to help students avoid getting locked into mortgages they can't afford.
"Utah is near the top in mortgage fraud in the nation," said Myla Dutton, executive director of Community Action. "Our goal is to prepare [homebuyers] so they can protect their families."
The homebuyer education course, which is offered at least twice a month, teaches first-time homebuyers a variety of skills, including how to manage credit issues and understand loan and down payment programs. The class will also cover how to select a real estate agent and shop for a home, and how to avoid predatory lending practices, an increasing problem today.
The course will be split into two three-hour sessions. The first session will cover the home-buying process, money management and lending processes. The second session will cover shopping for a home, selecting a real estate agent and purchasing a home.
One common misconception among homebuyers is that fees are non-negotiable, said Charmagne Wixom, home buying and mortgage counselor at Community Action.
"We want to help you speak on a more even level with [lenders], because they know it all, and all you know is you want a house," she said.
Most people just go in and sign, unaware that they are being overcharged or even charged for things they are not receiving, Wixom said. Few people understand the jargon used in contracts, and first-time homebuyers are especially prone to sign without asking questions.
"Sometimes they bump up the charges thinking you're not going to look at it, and we're teaching people to look at it," Wixom said.
Wixom recently ran into a former student who hugged her and thanked her for what she taught in the class. Because of the class, he said, he was able to negotiate fees and save $1,500.
"That's the fun part of my job, when people know you because you helped them," she said.
Community Action offers free pre-home ownership counseling, as well as counseling for mortgage refinancing, reverse mortgages and avoiding foreclosure. For more information and to register for classes, visit CommunityActionUC.org or call 801-373-8200 ext. 242.
The course is certified by the Utah Department of Real Estate for continuing education credits.
Copyright Brigham Young University 16 Apr 2008
