The Home Buyer Quiz V1.1

1. The
Homebuyer
Quiz

2. Answers are on the following
page
•Write down your answers and
see how you score!

3. The more credit cards I have the
better my credit history will be.
True or False?

4. False!
However, do not close any credit card accounts.
Just keep balances low or at zero, and pay on
time.

5. PITI, the acronym for the four components
of the monthly mortgage payment, stands
for:
Possible Income To Invest
Principal, Interest, Total, Income.  
Payment, Income, Total, Installment.  
pity
Principal, Interest, Taxes, Insurance.  

6. Principle, Interest, Taxes, and
Insurance.
Your monthly housing expense.

7. True or False: By comparing
how much you can afford per
month with different loan
terms (15 or 30 years) and
interest rates, you can
determine a range of “safe”
monthly payments.

8. True!

9. If your Monthly Net Income is less than your
anticipated After Home Purchase monthly expense
total, you should:
fill out the monthly spending planner again.
increase your monthly income as soon as possible.
not include household operations, maintenance, or improvements on
the monthly expense section.
Lower the number of tax exemptions for income taxes.
attempt to reduce your monthly expenses.

10. D. Attempt to
reduce your
monthly
expenses.

11. All of these are essential for successful
budgeting except:
setting realistic goals.
exercising will power to prevent overspending.
developing a good record-keeping system.
adhering rigidly to your objectives never making adjustments.

12. A. adhering rigidly to
your objectives never
making adjustments.

13. According to the Fair Housing Act, no lender may charge
excessive fees or refuse to make a mortgage loan based on
your:
Sexual orientation
race. 
religious background 
national origin or ethnicity.  
All of the above

14. E. All of the above

15. Why is it important to get an attorney
during the Offer to Purchase process?
To review the offer to purchase for accuracy
to ensure property meets safety code requirements.
to prevent mistakes that could affect the legal passage of property title.
additional contingencies may need to be added to the offer that you had not
considered.  
All of the above

16. E. All of the above

17. True of False: As a homeowner, it’s
recommended to have up to six months’
living expenses in savings.

18. True

19. An advantage of a fixed-rate mortgage
is:
None of the above
Negative amortization
the possibility for the interest rate to go down
the adjustments have lifetime caps.  
the monthly principal and interest payment are predictable and
unchanging throughout the life of the loan.  

20. D. The monthly principle and interest
payment are predictable and unchanging
throughout the life of the loan.

21. True or False: if the seller does not agree
to the contingencies on the Offer to
Purchase, the buyer is still legally required
to purchase the house.

22. False

23. In order to choose the most appropriate loan
for your needs, you need to consider:
whether your income is stable or fluctuating.
the amount of time you intend to live in the house.
the possibility of significant rate increases.  
All of the above

24. D. All of the above

25. Which of the following documents may a
lender require to review your income?
W-2s covering the most recent two tax years
Federal tax returns for the past 2 years
bank statements showing child support maintenance  
most recent year-to-date pay stub
All of the above

26. E. All of the above

27. Title insurance protects:
The attorney
The municipality
The Realtor
The seller
The buyer

28. E. The buyer

29. The closing costs include more than just the price of the
property. Which one of these does NOT appear on the
Settlement Statement?
Attorney’s fees
Lender’s fees
Pre payment of real estate taxes
Insurance costs
The water bill

30. D. The water bill

31. The purpose of the Deed is:
To attest to the structural integrity of the property
to prove you've done a good deed by purchasing the house.  
to provide proof of homeowner's insurance.
to prove that the property has no lien against it.  
to provide legal documentation transferring ownership of the property from the
seller to the buyer.  

32. B. To provide legal
documentation
transferring ownership
of the property from the
seller to the buyer.

33. In the event of unexpected financial
difficulty, the best thing you can do is to:
Ignore the proplem
Take out another loan
Contact the real estate agent
Declare bankruptcy
contact the lender.  

34. A. Contact the
lender

35. Which of the following is NOT usually
covered by homeowner’s insurance policies?
DVD
vandalism
theft
Fire damage
normal wear and tear.

36. A. Normal wear and tear

37. True or False: Lenders insist that
borrowers have homeowners insurance
primarily to protect the value of your home
in case it is damaged or destroyed.

38. True!

39. I hope you enjoyed the quiz!
Let me know your results!
David J DeCarlo
[email protected]