I think most of us can attest that being a first time home buyer can be a scary thing. Not only are you deciding on a large investment but the 
process can get confusing. But if you choose a realtor that is well educated and understands the issues that first time home-buyers face as well as learn some of the important terms it can be one of the most exciting and promising processes in your life. Below are a few of the terms that most new home buyers will find useful and as always if you are interested in becoming a first time home buyer feel free to contact me with any questions or concerns, I look forward to hearing from you!
Acquisition Cost : the cost of acquiring property in addition to the purchase price, sometimes referred to as closing costs. These will usually include escrow fees, title insurance, lenders fees, etc.
Back-End Ratio: the ratio of all fixed debt, including housing expenses, to gross income. A lot of lenders will require that your back-end ratio be at 45% or lower.
Credit Rating: an estimate of the credit worthiness and responsibility of a consumer. The rating comes from three credit agencies. Also, the amount, type, and terms of credit that are considered safe to extend to a consumer. (also known as FICO score)
Default: failure to pay a debt
Escrows: neutral third party company that handles the closing of a real estate transaction. Funds and documents are deposited with a neutral third party who is instructed to carry out the provisions of the agreement.
Short Sale: a sale of encumbered property that produces less money than is owed to the lender.
Beth Guthrie Realty 