New Life University

Welcome Message from our Pastors

Obi & Franka Agada

Lead Pastors, New Life Church

Beloved New Life University family,

We are thrilled to welcome you to this 10-Section Homebuying Course! The journey to homeownership is one of faith, wisdom, and faithful stewardship. God desires for His children to prosper and to have a place to call their own—a sanctuary where families can grow, thrive, and honor Him.

As you move through these modules, remember that purchasing a home is not just a financial transaction—it's a spiritual milestone. Proverbs 24:3-4 tells us, "By wisdom a house is built, and through understanding it is established; through knowledge its rooms are filled with rare and beautiful treasures."

This course will equip you with the knowledge you need to navigate the homebuying process with confidence and integrity. We're praying for you every step of the way. May God open doors that no one can shut and give you favor in this journey.

With faith and expectation,
Pastors Obi & Franka Agada

Your journey to homeownership begins with a solid spiritual foundation. Before searching for properties or talking to lenders, we must anchor ourselves in God's Word and His promises for our lives.

Key Biblical Principles:

• Seek First His Kingdom (Matthew 6:33): Put God first in your homebuying journey, and He will provide what you need.
• Wisdom Over Wealth (Proverbs 24:3-4): A home built on wisdom and understanding will be filled with precious and pleasant riches.
• Faithful Stewardship (Luke 16:10): God entrusts us with resources to manage wisely. Homeownership is an act of stewardship.
• Patience and Trust (Isaiah 40:31): Those who wait on the Lord will renew their strength. Trust His timing in finding the right home.

Owning a home is more than a financial goal—it's a dream that represents security, stability, and the ability to create a legacy for your family. Let's explore why homeownership matters and what it means for your future.

Why Homeownership Matters:

• Building Equity: Unlike renting, every mortgage payment builds equity—ownership in a valuable asset that appreciates over time.
• Stability for Your Family: A home provides a stable environment for children to grow up in and for families to thrive.
• Financial Freedom: Fixed mortgage payments protect you from rising rent costs and contribute to long-term wealth.
• Legacy and Inheritance: A home can be passed down to future generations, creating generational wealth and blessing.
• Personal Freedom: Customize, renovate, and make your space truly yours without landlord restrictions.

Common Fears and How to Overcome Them:

Before you start house hunting, getting pre-approved for a mortgage is one of the most important steps. It shows sellers you're a serious buyer and helps you understand how much home you can afford.

What is Pre-Approval?

Pre-approval is a lender's commitment to loan you a specific amount based on your financial situation. It involves a thorough review of your credit, income, debts, and assets.

What You'll Need for Pre-Approval:

• Proof of Income: Recent pay stubs (last 2-3 months), W-2s (last 2 years), tax returns (if self-employed).
• Credit Report: Lender will pull your credit report and score.
• Bank Statements: Last 2-3 months to verify assets and down payment funds.
• Identification: Valid driver's license or government-issued ID.
• Employment Verification: Contact information for your employer.
• Debt Information: List of current debts (car loans, student loans, credit cards).

How Much Can You Afford?

Lenders use several factors to determine your loan amount:

• Debt-to-Income Ratio (DTI): Your monthly debt payments divided by your gross monthly income. Most lenders prefer a DTI below 43%.
• Credit Score: Higher scores qualify for better interest rates and loan terms.
• Down Payment: Typically 3-20% of the purchase price. More down payment = lower monthly payments.
• Loan Type: Conventional, FHA, VA, USDA loans have different requirements and limits.

A mortgage is a loan used to purchase real estate, with the property serving as collateral. Understanding the types of mortgages and their terms is critical to making the best decision for your situation.

Types of Mortgage Loans:

Fixed-Rate vs. Adjustable-Rate Mortgages:

Mortgage Terms You Need to Know:

• Principal: The amount you borrow to purchase the home.
• Interest: The cost of borrowing money, expressed as an annual percentage rate (APR).
• Escrow: An account where your lender holds money for property taxes and homeowners insurance.
• PMI (Private Mortgage Insurance): Required on conventional loans with less than 20% down payment. Protects the lender if you default.
• Amortization: The schedule of your loan payments over time, showing how much goes to principal vs. interest.
• Closing Costs: Fees paid at closing (2-5% of purchase price), including appraisal, title insurance, and lender fees.

Now comes the exciting part—house hunting! With your pre-approval in hand, it's time to find a home that fits your needs, budget, and dreams.

Step 1: Define Your Must-Haves vs. Nice-to-Haves

Step 2: Work with a Real Estate Agent

A qualified real estate agent is invaluable in your home search. They have access to listings, market knowledge, negotiation skills, and will guide you through the entire process.

Step 3: Start Your Search

Use online tools like Zillow, Realtor.com, and Redfin, but also rely on your agent to show you homes and provide insights you can't get online.

What to Look for During Home Tours:

• Condition of the Home: Check for signs of water damage, foundation issues, roof condition, HVAC age.
• Layout and Flow: Does the home meet your family's needs? Can you envision living there?
• Neighborhood: Drive around at different times of day. Is it safe and welcoming?
• Resale Value: Even if this is your forever home, consider future resale potential.
• Hidden Costs: HOA fees, high property taxes, expensive utilities, or needed repairs.

You've found the perfect home—now it's time to make an offer! This is where strategy, negotiation, and guidance from your real estate agent come into play.

Components of a Strong Offer:

• Purchase Price: Your agent will help you determine a competitive offer based on comparable sales in the area.
• Earnest Money Deposit: Typically 1-3% of the purchase price, showing you're serious about buying. This goes toward your down payment or closing costs if accepted.
• Contingencies: Conditions that must be met for the sale to proceed (e.g., financing, appraisal, inspection).
• Closing Date: When you'll finalize the purchase and take ownership. Flexibility here can be an advantage.
• Personal Letter (Optional): A heartfelt letter to the seller explaining why you love their home can sometimes make a difference.

Types of Contingencies:

Negotiation Tips:

• Know the Market: In a seller's market (high demand), you may need to offer at or above asking price. In a buyer's market, you have more negotiating power.
• Be Prepared to Compromise: Sellers may counter your offer. Be ready to negotiate on price, closing date, or repairs.
• Stay Flexible: If you're competing with other buyers, consider waiving certain contingencies (only if you're confident) or offering a quicker closing.
• Trust Your Agent: They have experience navigating these waters and will advocate for your best interests.

After your offer is accepted, two critical steps remain before closing: the home inspection and the appraisal. Both protect you as a buyer and ensure you're making a sound investment.

The Home Inspection

A home inspection is a thorough examination of the property's condition by a licensed professional. It covers the structure, systems, and major components of the home.

Understanding the Inspection Report:

The inspector will provide a detailed report highlighting any issues found. Not every issue is a deal-breaker—focus on major repairs that affect safety, structure, or habitability.

• Minor Issues: Cosmetic problems like chipped paint or worn carpet. These are expected in any home.
• Moderate Issues: Outdated appliances, minor electrical repairs. You can often negotiate for a credit or repair.
• Major Issues: Foundation cracks, roof leaks, faulty HVAC. These require serious negotiation or may lead you to walk away.

Your Options After the Inspection:

The Home Appraisal

An appraisal is an unbiased professional opinion of the home's value, required by your lender. The appraiser compares your home to similar recently sold properties in the area.

The closing (also called settlement) is the final step in the homebuying process. This is when ownership officially transfers from the seller to you, and you receive the keys to your new home!

What Happens Before Closing:

• Final Walkthrough: Typically done 24-48 hours before closing. You'll inspect the home to ensure agreed-upon repairs were completed and the property is in the expected condition.
• Review Closing Disclosure: At least 3 days before closing, you'll receive this document detailing your loan terms, monthly payments, and closing costs. Review it carefully and compare it to your Loan Estimate.
• Secure Funds: You'll need to bring a cashier's check or wire transfer for your down payment and closing costs.
• Get Homeowners Insurance: Required by your lender. You'll need proof of coverage before closing.

Understanding Closing Costs:

Closing costs typically range from 2-5% of the purchase price and include various fees:

The Closing Day:

Closing typically takes 1-2 hours. You'll meet with the seller, real estate agents, lender representative, and a closing agent (attorney or title company representative).

What to Bring to Closing:

• Valid government-issued photo ID
• Cashier's check or proof of wire transfer for closing costs
• Proof of homeowners insurance
• Copy of your purchase agreement
• Any other documents requested by your lender or attorney

Being a first-time homebuyer comes with unique advantages! There are numerous programs, grants, and tax benefits designed to help you achieve homeownership more affordably.

Federal First-Time Buyer Programs:

State and Local Programs:

Many states and cities offer down payment assistance (DPA) programs, grants, and tax credits specifically for first-time buyers. These can provide thousands of dollars in help!

Tax Benefits for Homeowners:

• Mortgage Interest Deduction: Deduct the interest you pay on your mortgage (up to $750,000 in loan amount) from your taxable income.
• Property Tax Deduction: Deduct up to $10,000 in state and local property taxes.
• Capital Gains Exclusion: When you sell your primary residence, up to $250,000 (single) or $500,000 (married) of profit is tax-free if you've lived there at least 2 of the last 5 years.

Congratulations—you've made it to the final module! Homeownership is not just a milestone; it's a testimony of God's faithfulness and your faithful stewardship. Now it's time to maintain your home, honor God with it, and inspire others.

Life as a Homeowner:

Owning a home comes with new responsibilities, but also incredible freedom and opportunity. Here's what to expect:

• Monthly Mortgage Payments: Set up auto-pay to never miss a payment. Consistent payments build equity and protect your credit.
• Home Maintenance: Budget 1-3% of your home's value annually for repairs and upkeep (HVAC, plumbing, roof, lawn care).
• Property Taxes and Insurance: Usually paid monthly through escrow with your mortgage payment.
• Utilities: Electric, water, gas, trash, internet—track your monthly costs and look for ways to save.
• HOA Fees (if applicable): Homeowners association fees cover shared amenities and community upkeep.

Honoring God Through Homeownership:

Your home is more than four walls—it's a gift from God and a platform for His kingdom. Here's how to steward it well:

• Hospitality: Open your home to guests, host small groups, and create a welcoming environment for fellowship.
• Prayer: Dedicate your home to the Lord. Pray over each room and invite His presence into your space.
• Generosity: Use your home to bless others—provide a place for those in need, host gatherings, or support community events.
• Peace and Rest: Make your home a sanctuary from the world—a place of peace, love, and spiritual growth.
• Legacy: Teach your children the value of stewardship and the blessing of homeownership. Pass down godly financial principles.

Share Your Testimony:

Your journey to homeownership is a powerful testimony of faith, perseverance, and God's provision. Share it with others to encourage and inspire them:

• Tell your story at church, in small groups, or on social media.
• Mentor others who are on their homebuying journey.
• Give God the glory for every door He opened and every obstacle He removed.

Use these interactive tools to help plan your homebuying journey and make informed financial decisions.

Test your knowledge and earn your certificate! You must score at least 80% to pass.

Speak these declarations over your homebuying journey. God's Word never returns void!

Complete the Final Quiz with a passing score to unlock your certificate!