Buyer Expectations

In the real estate world, pre-approval means you get an assessment of your ability to secure a loan by the lender for a specified amount. This assessment will be based on your income, assets and credit history.

A buyer’s agent helps you find the right home, negotiate the best price, navigate contracts, and avoid costly mistakes throughout the process.

The "28" means no more than 28% of your gross monthly income should go toward housing expenses. The "36" refers to total debt, which includes your housing costs plus other monthly debts.

Types of real estate loans include conventional, FHA, VA, USDA, jumbo, fixed-rate, and adjustable-rate mortgages.

Title insurance protects buyers and lenders from legal or ownership issues tied to a property, even after the sale is completed.

Escrow is a secure process where a third party holds money and documents until all parts of the real estate deal are completed.

Real estate agents are usually paid through commission, which is a percentage of the home’s sale price paid after the deal closes.

First-time buyers often put 5–10% down. 15–20% lowers monthly payments. 20%+ may avoid PMI, saving extra monthly costs.

In a short sale, expect long approval times, lender review, possible delays, property sold as-is, and no guarantee your offer will be accepted.

A short sale occurs when the homeowner can no longer pay the remaining mortgage balance and wants to sell the house.

Almost every home inspection finds some problems. That’s normal. The point isn’t to find a perfect home. It’s to know what you’re buying or selling so there are no surprises later.

A home inspection is very important because it uncovers the parts that buyers don’t usually know right away.