The study below shows the direct benefit of pre-purchase counseling for home buyers. How group education (two hour course), one on one counseling, and financial literacy, can and will lead to successful buyers and home owners. This study also shows both the short term and long term benefit to meeting the specific need(s) of the participant, while establishing standards and goals (counseling) for the outcomes (coaching).
I recommend reading the full report. Anthony Mitchell
The Effectiveness of Pre-Purchase Homeownership Counseling and Financial Management Skills. Homeownership remains a cherished goal for many people. However, developments in mortgage products and drastic changes in the housing market have made the realization of becoming a homeowner more challenging. Fortunately, homeownership counseling is available to help navigate prospective homebuyers in their quest. But the effectiveness of such counseling over time continues to be contemplated. Previous studies have made important strides in our understanding of the value of homeownership counseling, but more work is needed. More specifically, homeownership education and counseling have never been rigorously evaluated through a randomized field experiment.
This study is based on a long-term (five-year) effort undertaken by the Federal Reserve Bank of Philadelphia on the effectiveness of pre-purchase homeownership and financial management skills counseling. The study improves upon previous efforts by employing a different methodology that relies on an experimental design and tracks study participants’ creditworthiness over time. Download the full report. (49 pages, 829 KB
The analysis here shows that a two-hour pre-purchase homeownership workshop and one-on-one pre-purchase counseling improved the study participants’ financial creditworthiness as they prepared to qualify for a home mortgage. However, the benefits from pre-purchase homeowner counseling and money management assistance for the treatment participants who received one-on-one counseling were generally greater in terms of credit scores, total debt, and various delinquency days on payments relative to control participants. Both treatment participants with one on-one counseling and control participants who became homeowners tended to pay their mortgages in a timely manner overall.