How Can You Help Union Members with Their Homeownership Dreams?

For many union families, owning a home is a dream that provides stability, security, and a sense of accomplishment. However, buying a home can be complex and overwhelming, especially regarding financial aspects – but members will appreciate they can turn to their union for help on the path to homeownership.

This is where home-buying assistance and financial counseling become invaluable resources. As summer arrives, your members are going to be in even greater need of these services as they take part in the busiest season for real estate. Recent data from 2021 showed a 50% increase between home sale numbers in January and June.¹

Let’s see how these services can empower union families to achieve their homeownership goals and help them in planning their financial future. 

The Importance of Homebuying Assistance for Union Families

Homebuyer Education Programs

Homebuyer education programs provide comprehensive guidance on all aspects of purchasing a home. 

These programs cover topics like: 

• Selecting a suitable property
• Understanding mortgage terms
• Negotiating offers
• Responsibilities of homeownership
  
  

Understanding the home-buying process and the topics mentioned is especially important for first-time buyers – a survey from The Washington Post found that 20% of those surveyed were not aware of the minimum down payment required, and 24% relied entirely on internet research for their mortgage process.²

The magnitude of purchasing a home shouldn't be taken lightly, and by equipping your union families with proper knowledge and tools, these programs will empower them to make sound decisions and confidently navigate the real estate market.

Financial Education and Counseling

Down Payment Assistance

One of the major hurdles for many union families is saving for a down payment. Home-buying assistance programs often offer down payment assistance options, such as grants or low-interest loans. 

A Homebuyer Education program may be able to match members to one of these programs allowing them to significantly reduce the upfront costs, making homeownership more accessible.

Benefits of Financial Counseling for Union Families

Looking further into the benefits of financial counseling in the home-buying assistance process will help show the many ways it helps those who complete it.

Debt Management and Credit Improvement

Financial counselors work closely with union families to evaluate their current financial situation, identify areas of improvement, and develop strategies for managing debt effectively. 

They also provide guidance on improving credit scores, as better credit opens doors to more favorable mortgage rates and loan options and could lead to significant savings for your members if they improve their credit scores. 

For example: a buyer with a score in the 760-850 range will pay $376,000 in interest on a $300,000 home purchase instead of $452,000 someone with a score in the 640-659 range – a savings 0f $86,000 or 20% over the life of the loan. *Numbers reported from FICO and Bankrate data February 2023.³

This is one of the most important pieces of the home-buying preparation process due to the potential for savings and quick results that can be seen if members follow the advice of their counselor.

Budgeting and Savings

Financial counselors assist union families in developing budgets that accommodate their unique financial circumstances while allowing for savings toward homeownership goals. 

They provide tips and techniques to save money, reduce expenses, and build a solid financial foundation.

With only 32% of U.S. families reporting that they have a budget,⁴ this is most likely going to be the first step in your member's journey to their new home.

Mortgage Readiness

Financial counselors help union families assess their mortgage readiness by analyzing their income, debt-to-income ratio, and credit profiles. These are all financial details that lenders will look at in their mortgage financing decision, and having a professional, external opinion will help increase the odds of approval and lower stress.

By evaluating these factors, counselors can guide families on how to position themselves for mortgage approval and the most favorable loan terms.

Know the Home Purchasing Cycles

Being aware of times your members are more likely to be purchasing a house can help you provide the appropriate informational materials.

The arrival of spring often brings a surge in the real estate market, with increased home-buying activity. Here are a few reasons why spring is a popular season for purchasing homes:

• Spring's mild weather provides optimal conditions for house hunting, as buyers can comfortably explore properties without extreme temperatures or inclement weather.
• Many homeowners choose to list their properties in the spring, leading to a larger inventory of homes available on the market. This variety gives buyers more options to find their ideal home.
• Families with children often prefer to move during the summer to minimize disruptions to their children's education. Spring allows for ample time to complete the home-buying process before the start of the new school year.

Homebuying assistance and financial counseling services empower families by providing education, resources, and practical guidance to navigate the complexities of the process successfully. 

By leveraging these resources, union families can begin on their homeownership journey with confidence.

Homebuyer education courses are a great way to show your members how their union protects them and has their back in everyday situations and big ones like purchasing a home. They also pair perfectly with the legal benefits in the Member Resources Legal and Personal Protection Plan, which offers discounts on real estate legal assistance.

Learn more about what we offer for unions to protect and provide for their members on our website or book a meeting to see how our services can help your members.

¹ United States Housing Market from Redfin
² Survey: Many first-time home buyers lack basic knowledge about mortgages  by Michele Lerner
³ The mortgage rate you get depends partly on your credit score. Here’s what to expect by Sarah O'Brien
⁴ Budgeting Statistics: By the Numbers by Livia Gerhon

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