Buyers! Have you considered the 3-3-3 rule?

What is the 3-3-3 rule you ask...? Let me break it down and tell you why it's important...!

Simple definition, the 3-3-3 rule is a financial and practical guideline designed to help buyers measure their readiness before investing in a home.

Clearly the number "3" comes into play here and the first example is, there are 3 Core Components to the Rule:

Emergency Savings, Mortgage Reserves, Property Evaluations

Continuing with the number "3"...

Having available 3 Months of Emergency Savings, 3 Months of Mortgage Reserves and 3 individual Property Evaluations is the the main key of the Rule!

Let's see what each of those means for a serious buyer...

3 Months Emergency Savings: Life Happens!! We should allow ourselves to be prepared for the unexpected...welcomed or not. Having 3 months of general living expenses set aside in an accessible account to handle any of life's surprises is a must.

3 Months of Mortgage Reserves: The reality is, some of life's surprises could include a decline in income. Having 3 months of extra cash reserved specifically for that sort of rainy day to be able to cover monthly mortgage expenses just makes sense.

3 Property Evaluations: Always do your research! Make some comparisons, have the knowledge to be confident in your decision. Having 3 comparisons of similar properties to understand the fair market value feels like common sense.

This last one though should be provided by the Realtor, the important part is that the buyer takes the time to evaluate those comparisons and understands the value of their investment.