Purchasing a Home Test

Front

When applying for a loan to buy a house, the first step involves: Finding a good loan officer, Get a realtor right away, Sell off all your assets/valuable items

Back

Finding a good loan officer

Front

down payment

Back

An initial cash payment made when something is bought on credit.

Front

closing costs

Back

Fees paid at the sale of a home. May be paid by either the buyer or the seller.

Front

Realtor:

Back

A real estate agent - represents buyer or seller

Front

Once your loan has been accepted, closing day includes: Paying the down payment, Paying closing costs, Signing paperwork for the title

Back

All of the above

Front

Many people see a home as an investment. That’s because you can build up ____ ____, which is the amount that’s left after you subtract your mortgage balance from the current market value of your home. For example, if your home is worth $100,000 and you owe $50,000 on your mortgage, you have $50,000 in equity.

Back

home equity

Front

The price for houses tend to ______ as time goes on, giving home owners a good chance to ____ profit when selling their house.

Back

Increase; Gain

Front

As you continually make your monthly ______ payments on time, your positive payment history can help raise your credit score. Another way a mortgage can help increase your score is by adding more diversity to your credit. A good credit mix shows lenders that you’re able to handle different kinds of ____.

Back

mortgage debt

Front

Rent is likely to fluctuate with landlords as the ___ __ ____ rises. But homeowners with a fixed-rate mortgage can expect the same payment on their principal balance each month.

Back

cost of living

Front

Stable Payments

True or False: You could own your home free and clear, meaning you’ll no longer have to make mortgage payments to anyone. AND If you choose to rent for the rest of your life, you’ll always have a monthly payment.

Back

True