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Quiz

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1. What are closing costs?

Fees required to obtain a mortgage and transfer ownership of the home
Fees you must pay to your real estate agent
Fees the seller must pay to the county


2. What is one way that you may be able to purchase a home with a down payment of less than 20%?

Negotiate with the seller to accept a smaller down payment
Obtain private mortgage insurance
Assure the lender that you will make up the 20 percent over the next year


3. PITI stands for:

Purchase, information, trust, investment
Payback, income, transaction, inventory
Principal, interest, taxes, and insurance


4. A ________ mortgage has an interest rate that remains constant over the life of the loan:

Fixed-rate
Adjustable rate
Interest only


5. To determine the loan amount you qualify for, a lender will calculate:

Housing expense and total debt ratios
Asset and liability ratios
Earnings and eligibility ratios


6. Which is a true statement regarding taxes and homeownership?

Only mortgage interest is deductible on your income taxes
Mortgage interest and property taxes are deductible on your income taxes
Mortgage interest, property taxes, and homeowners insurance are deductible on your income taxes


7. It is recommended that you check your credit reports for errors at least __________ before you plan to apply for financing:

6 months
60 days
30 days


8. To improve your credit score:

Avoid using credit for at least one year before you plan to purchase a home
Close all old accounts
Make your payments on time and keep your balances low


9. A seller will know that your financing is in place if you have a loan ____________:

Pre-qualification
Pre-approval
Pre-accumulation


10. When buying a home, you have ______ hours to review the paperwork before closing.

24
48
36

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