If you’re facing a major housing decision, you may be wondering where you can get professional guidance without adding another major expense to your budget. Housing counseling can provide information, options, and a plan based on your individual circumstances.
Whether you’re experiencing housing instability, struggling with mortgage payments, or you're a first-time homebuyer trying to determine whether you’re ready for a mortgage, Housing Counseling through RethinkingDebt can help you better understand your options.
Here’s what you can generally expect from a housing counseling session and how you can prepare.
The Basics of Housing Counseling
Housing counseling is offered through HUD-approved agencies at little to no cost and provides you the tools to make an informed decision about buying, renting, or keeping your home. Sessions are led by certified counselors who can help you understand your options based on your specific circumstances.
The type of assistance you receive will depend on your situation. A prospective homebuyer, for example, may need help evaluating their finances and preparing for homeownership. Someone having trouble making mortgage payments may need guidance understanding possible alternatives and determining what steps to take next.
Working with a housing counselor gives you the opportunity to discuss your specific circumstances rather than trying to sort through all of your options on your own.
Preparing for Your Housing Counseling Session
Before your appointment, gather as much information about your financial and housing situation as possible.
Depending on the type of counseling you're receiving, useful documents may include:
- Recent pay stubs or other proof of income
- Your household budget and monthly expenses
- Credit card and loan balances
- Bank statements
- Tax returns
- Mortgage statements
- Housing-related notices or correspondence
- Information about other financial obligations
You should also think about what you want to accomplish. Are you hoping to purchase your first home? Improve your finances before applying for a mortgage? Find a way to catch up on mortgage payments? Avoid foreclosure?
Coming into your appointment with clear questions and goals can help you get more out of your counseling session.
If debt, credit, or budgeting issues are affecting your housing situation, Credit and Budget Counseling can also help you take a broader look at your finances.
During the Housing Counseling Session
During your session, your counselor will work with you to understand your housing needs and overall financial situation.
That may include reviewing your income, expenses, debts, credit, and current housing costs. From there, you can discuss your goals, identify potential obstacles, and develop an action plan.
For a prospective homebuyer, that plan could include improving credit, paying down debt, building savings, establishing an affordable homebuying budget, or preparing for the costs that come with owning a home.
If you're already a homeowner and having trouble keeping up with your mortgage, counseling may focus on understanding your current mortgage situation and exploring potential options for avoiding foreclosure or resolving missed payments.
RethinkingDebt's Housing Counseling services can help you determine which type of assistance is appropriate for your particular situation.
Next Steps After a Housing Counseling Session
After your session, you should have a clearer understanding of your financial situation and the steps you can take toward your housing goal.
Those next steps will vary from person to person. You may need to improve your credit, reduce debt, adjust your budget, increase savings, communicate with your mortgage servicer, or complete additional homebuyer education.
The Benefits of Housing Counseling
Housing counseling isn't only for people facing foreclosure or another immediate housing crisis. It can be just as useful when you're preparing to purchase a home and want to make sure you're financially ready before taking on a mortgage.
Getting professional guidance early can help you identify potential problems before they become larger ones. For prospective homebuyers, that could mean addressing credit or debt before applying for financing. For existing homeowners, it could mean exploring available options before falling further behind on mortgage payments.
Your housing situation is also closely connected to your overall financial health. If unsecured debt is making it difficult to manage your household budget, you may want to learn more about RethinkingDebt's Debt Management Program and other available financial counseling services.
Take the Next Step
Whether you're preparing to buy your first home, struggling with your current mortgage, or simply need help understanding your housing options, counseling can give you a clearer path forward.
RethinkingDebt offers nonprofit financial and housing counseling designed to help consumers better understand their options and make informed decisions.
Start by exploring Housing Counseling to learn more about available services and determine the type of assistance that fits your situation.