First Time Homebuyers Can Benefit Greatly from Counseling

April 27, 2013

Counseling for purchasing Chicago Real EstatePre-purchase financial counseling isn’t just for luxury-grade purchases anymore; in fact, a new study from Freddie Mac shows that pre-purchase counseling can help first time buyers of Chicago real estate reduce their chances of becoming seriously delinquent by as much as 29 percent, an increase from similar studies in the past. This reduction is good news for lenders, who can save an average of $1,000 per loan thanks to the reduction in risk that pre-purchase counseling brings.

Economists found that the 90-day delinquency rate was reduced by 33 percent on average through home study counseling, 32 percent by phone or Internet counseling and 28 percent by classroom counseling. Findings also suggest pre-purchase counseling has a significantly larger impact on 90-day delinquency rates among first-time buyers when compared to repeat buyers, a segment where it reduced seriously delinquency rates by only six percent according to Freddie Mac.

Are you a first time homebuyer? Has this study changed your mind about getting some pre-purchase counseling, or have you been through counseling? Let us know in the comments.

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

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