Homebuyers benefit from free education before purchasing

This piece is sponsored by LSS of South Dakota.

If there’s one common piece of feedback those involved in offering education to homebuyers hear most it’s this:

“I wish I would have taken this sooner.”

The truth is anyone in South Dakota can the take the classes, which are offered multiple times every month through LSS of South Dakota. Choose one six-hour course on a Saturday or two three-hour courses split during evenings. Take it in person at 705 E. 41st St. in Sioux Falls or online with the live class.

“The reality is many of our clients have to take the course as a requirement of their loan, and they wait to do it until a couple months prior to closing,” said Sara Ramirez, program director for the LSS Center for Financial Resources.

“Then, they tell us they wish they had done it sooner because there’s a lot of valuable information that would have helped them during the process.”

LSS homebuyer education covers the road map of homebuying — from start to finish.

“We begin by talking about financial goals and then move on to budgeting, including how to plan not just for your mortgage but maintenance and utilities,” Ramirez said.

“Then, we talk about credit and what a lender looks for on a credit report, loan types and the process of working with a lender, as well as what to know about predatory lending.”

The course also covers working with a real estate agent, what to expect in a purchase agreement, how inspections work and even what you’ll find in your closing documents.

“It’s the full spectrum,” Ramirez said. “Classes are facilitated by HUD-certified counselors, and we often have lenders and Realtors come speak and give a professional presence so students can ask questions.”

One of them is Steve Ennis, a mortgage banker with Plains Commerce Bank, who has volunteered to teach part of the LSS course for more than a decade.

“We have a responsibility as professionals to give back, and it’s really my conviction that we’re putting homeowners in the best position to be successful with their home purchases,” he said.

He brings in his background in economics, talking about trends in the market and explaining through decades of experience the do’s and don’ts of homebuying.

“I’ll talk about what can derail the process, and then I go into the hacks — things you can implement that will give a reasonable return for a modest investment,” he said. “It tends to engage some great discussion. My approach is to educate and try to demystify. I present it plainly and like to have fun with it.”

He sees the impact of education when he meets with clients ready to go through the lending process.

“The ones who do this class early in the process are able to be more decisive, more confident and better able to anticipate next steps,” he said. “You don’t buy the car without taking driver’s ed first, and that’s the way I view this.”

Each class typically draws about 10 to 15 participants.

“One of the biggest benefits of the class is a lot of times they not only learn from us but also from each other,” Ramirez said. “Someone might ask a question you didn’t think of but applies to you.”

Feedback from participants is strong. Here’s a sampling of what they had to say:

When asked “What was most helpful to you?”

“Being able to ask questions and get knowledgeable, unbiased answers.”

“I thought the class was very informative, and I learned a lot of tips and things about the buying process I wouldn’t have thought of.” 

“The facilitator was very helpful and pointed out very beneficial info that we hadn’t thought about before. It was great information, and we would highly recommend all of this class. All steps of homebuying process were laid out very clearly and were easy to understand. We appreciate having this service to be able to learn!”

“Before this course, I relied on my spouse for everything related to the buying process. This course helped me feel more confident in the process for future endeavors.”

“Being able to attend on Zoom was helpful for my schedule. This seminar was very educational and makes me feel more comfortable purchasing a home.”

“Knowing that I can meet with someone one-on-one for further financial education and assistance.”

While it’s geared toward first-time homebuyers, anyone can take the class. It’s also a good idea if it has been many years since you purchased a home or if your life situation has changed since your last purchase.

“We also don’t have any financial interest in what clients decide to do,” Ramirez said. “Hopefully, they’re working with great people, but they all have a financial interest, where we’re a nonbiased third party that wants to make sure everyone is aware of their options.”

If you’d like more personal advice, LSS offers financial counseling to help you create and manage your budget — including how your household expenses fit into it.

“It’s been rewarding to see how many people also have taken the class and then decided they wanted to come back and sit down and have someone look at their whole approach to budgeting,” Ramirez said. “We’re here to help then too.”

The next class is April 11 beginning at 10 a.m.

To learn more about homebuyer classes at LSS, start here.

If you’re a professional involved in home lending or real estate who would like to volunteer with LSS, reach out to [email protected].