First Time Buyer Tips

Apply the 28/36 rule: spend up to 28% of gross income on housing and no more than 36% on total debt, including housing and other monthly obligations.

The 3-3-3 rule in real estate is a simple guideline that helps homebuyers prepare for the financial responsibilities of owning a home.

A power of attorney gives someone legal authority to act on another person’s behalf in financial, legal, or real estate matters.

First check online records, then visit your local recorder/assessor’s office, or hire a title company or lawyer to do a full title search for accuracy recommended.

A lien is a legal claim placed on a property because someone owes money. An encumbrance, on the other hand, refers to any rule, right, or limitation that affects how a property can be used or transferred.

The offer is the start of negotiation, while the purchase agreement is the official deal that follows once both sides agree.

A contingent home means it is already under contract, but there are still important conditions that must be met before the sale can move forward. In a pending home most or all of the conditions have already been cleared

Once your offer is accepted and the purchase agreement is signed, you are now considered under contract. This means both the buyer and the seller have agreed on the terms of the sale, and both parties are legally committed to moving forward with the transaction.

A purchase agreement is a written contract between a buyer and a seller that explains the terms and conditions of a real estate sale.

Escrow is a safe holding place for money and important documents during a real estate transaction.

If you send an offer but the seller has not signed it yet, you usually still have control. You can withdraw your offer if you change your mind. In most cases, there is no penalty because the seller has not accepted your terms yet.

Earnest money, also called a good faith deposit, is money a homebuyer pays after the seller accepts their offer. It shows the seller, “I’m serious about buying this home.”