How These New Jersey Educators Utilized the Teacher Next Door Program

One perk of going into an education career are some of the programs and incentives available to teachers. Often, companies will create discounts for teachers or there will be opportunities specifically available to give teachers a leg up.

An example is the Teacher Next Door National Home Buying Program. The home buyers that go through the program enjoy a more streamlined experience and save money on expenses that can add up. 

“I had heard about Teacher Next Door through my wife’s research when we casually started thinking about the home-buying process,” said Timothy Farrell, a special education teacher who utilized the program for a recent home purchase. “We had heard vague recommendations of different programs being available to help teachers and educators with the homebuying process and help with other major expenses.”  

Shannon Pickrell, who teaches science at Discovery Charter School in Newark, also went through the Teacher Next Door program. Pickrell already had prior home-buying experience and was impressed at how much simppler the process was.

“This is our first house in the U.S.,” Pickrell said. “The other house we purchased was abroad and the process was very different. So, when our Teacher Next Door contacts explained to me their process and how someone would manage my account and deal with all the other parties, I was sold.” 

The program isn’t just limited to teachers. Government workers, law-enforcement officers, first-time homebuyers, veterans and active-service members and more can take advantage of this program that saves money and stress. 

“Everything is in one place,” Pickrell said. “I always knew where to look for paper. Also, we closed in about 32 days from the time of our offer, which I heard is very quick.”

How Teacher Next Door works

In order to be considered for Teacher Next Door, all potential program participants have to go through an application process. A representative from the program interviews applicants to get an idea of their financial situation, buying timeline and home preferences. 

“They give you all the information you need so you can make an informed decision,” Pickrell said. “Once this is finished and you decide it is time to start looking, they give you a checklist and an online system where you upload all your documents. It is very easy. If you are missing anything or need additional clarification, they let you know.”

Also helpful for home buyers is having a dedicated account manager to work with underwriters, appraisers and other bureaucratic aspects involved. 

“Our account manager helped navigate and connect the different people needed in the home-buying process,” Farrell said. “I never knew there were so many necessary people, and to be honest, some seemed unnecessary. But our account manager helped keep us in touch with the mortgage company, their approved real estate attorney that we used, the sellers’ team, our personal realtor, the titling company and more.”

Program participants are also treated to a cheaper application fee, as well as having their home appraisal reimbursed. Another perk is having an entirely digital process.

“Everything is done online. Once you put in an offer, the paperwork is sent over and you sign it online,” Pickrell said. 

Time and money saved

Purchasing a home is a big deal that comes with a fair share of stress and involves multiple steps. For buyers that go through the Teacher Next Door program, that stress is lessened. 

“Our account manager helped me understand the loan process and math involved, what costs were involved with each step and was a pretty good psychologist, as the home search process stressed me out,” Farrell said. 

For Pickrell, Teacher Next Door allowed her to prioritize home shopping.

“We admittedly do not know much about the real estate market,” Pickrell said. “Teacher Next Door handled everything behind the scenes, which allowed us to be able to focus on house shopping with our realtor.”

If buyers do not have an already-established realtor, the program has a nationwide network of trusted professionals that can assist with home shopping within participants’ preferred neighborhoods. 

And while efficiency and ease are great perks, the program also boasts some hefty savings.

“All told, we saved somewhere around $3,000 in the process, and they did help us secure a very strong low interest rate,” Farrell said. “Also, it was great to have pre-approval for our mortgage from early on in the shopping process because homes were selling so quickly on the market.”  

As for Pickrell - excluding home down payment, closing costs and inspection, she only paid for the application fee. 

Why financial literacy is necessary as an educator

Not only did Teacher Next Door save Farrell and Pickrell time and money, the process also added to their financial literacy, especially having a dedicated account manager to inform and answer questions. For Pickrell, being self-aware about personal finances is the most important step toward buying a house.

“Buying a house is the biggest purchase you can make,” she said. If you are not financially literate, you could put yourself in a situation where your mortgage is too high or you bought a house that was too expensive - it will not be an enjoyable experience.”

Educators especially need to be hyper aware of finances, as their situations are unique, compared to other full-time workers.

“We get paid for 10 months and then need to budget money for the two months over the summer where we are not paid,” Pickrell said. “You need to know how to budget, save and spend wisely.”  

Farrell is also mindful of the financial options available to educators and credits research, supplemental income and savvy money-management techniques as ways he has been able to enjoy a comfortable lifestyle.

“Financial literacy is obviously important for everyone, but unfortunately for educators amongst other fields, there are not certain financial perks and opportunities that may be possible in other industries,” he said. “We do not make sales commissions, get stock options or holiday bonuses from a company. Even as unions and school districts work well with each other, pay raises have tended to only be at or even below the rate of inflation. Like many teachers, I love what I do, but we have to make the most of the money we do earn and find other ways to make money and supplement our income.”

To keep savvy and make sure he hits his financial goals, Farrell works with a financial planner and also utilizes the app Robinhood, which offers articles on news, trends and financial education, as well as options to buy into stocks at a fractional level.

“I would recommend that everyone find a financial planner, especially to assist with long term financial goals,” he said. “The most important item I feel would be setting up plans for supplementing retirement.”  

To further assist educators’ financial literacy, Alternate Route has also rounded up some online resources for educators to discover grants and loan forgiveness, as well as educational content. 

Grant and loan forgiveness resources

• Debt.com
  • A one-stop shop full of resources that tackle loan forgiveness, grants and financial help for teachers
• Teach.com
  • Teach.com has an entire section that highlights grants for teachers.

Educational resources

• 5 Expert Financial Wellness Tips for Educators
  • This 2021 Alternate Route blog offers tips for getting a financial plan in order.
• MissBeHelpful
  • Former teacher - and Alternate Route guest speaker - Yanely Espinal is now the director of educational outreach at Next Gen Personal Finance. Espinal provides free educational resources through her website, blog and social media accounts.
• Moneygeek
  • The personal-finance website has an entire page devoted to teachers.
• The Smarter House Buyer - How to Buy a Home
  • The Smarter house buyer is great for the first time home buyer as well as the seasoned home buyer. It offers a homebuyer's education program. They also have great AI tools.
• Suze Orman
  • The financial powerhouse is also a great resource to further one’s education. Her website features podcast episodes, a regularly updated blog and individual ‘resource centers’ based on financial topic areas .
• Alexa von Tobel’s TEDxWallStreet presentation
  • Espinal cites Alexa von Tobel’s TEDxWallStreet presentation as one of her trusted resources.

If you’re considering following your dream of teaching, Rutgers Alternate Route can offer you the support and training you need to succeed. Be sure to follow Rutgers Alternate Route on Twitter and sign up for Alternate Route’s monthly newsletter for more information and stories from the field of education.