Buying a Home

Multiple Choice

Which of the following is a significant reason why people choose to buy a home?

• To build equity over time

• To avoid paying property taxes

• To have fewer responsibilities

• To move frequently

Open Ended

What are some potential benefits of owning a home compared to renting?

Multiple Choice

Which of the following is NOT mentioned as a quick fact about homeownership?

• Homeownership always increases in value

• Buying your first home requires planning and saving

• Prepare a checklist to help you shop for a home

• There are government programs for first-time home buyers

Open Ended

Explain why buying a home is considered a major part of the American dream and discuss its financial and emotional implications.

Multiple Select

Which of the following are advantages of homeownership?

• Forced savings plan

• Deduct property taxes from income tax

• Mortgage payments become cheaper in 'real' dollars

• Monthly payments are always lower than rent

Open Ended

List two disadvantages of homeownership mentioned in the slides and explain how they might affect a first-time home buyer.

Multiple Select

Which features are most preferred by Boomers (age 41-60) when choosing a home?

• No stairs or first-floor master suites

• Fireplaces

• Low-maintenance surfaces

• Large square footage

Multiple Choice

Which of the following is a feature commonly desired by Gen Xers and Echo Boomers in their homes?

• Smart-home technology in every room

• Large, open kitchens

• Separate tub and shower

• High quality kitchen cabinets

Multiple Choice

What are some features that are important to all groups when designing a kitchen?

• Large, open kitchens

• Quality kitchen cabinets

• High-performance appliances

• All of the above

Open Ended

Explain why planning and saving are important steps in preparing for homeownership.

Multiple Choice

Which of the following are ways to reduce downpayments for first-time home buyers?

• Government-insured mortgages

• Local housing agency programs

• Curtailing spending and asking relatives

• All of the above

Open Ended

Describe the significance of closing costs in the home buying process and how some programs can assist with these costs.

Open Ended

Explain why it is important to have a cushion for maintenance and repairs when considering long-term affordability of a home.

Multiple Choice

Which of the following best describes the 'front-end ratio' in long-term affordability when purchasing a home?

• The percentage of gross monthly income spent on PITI costs

• The percentage of gross monthly income spent on all debts

• The percentage of gross monthly income spent on savings

• The percentage of gross monthly income spent on utilities

Multiple Choice

Given that 28% of your income can go towards housing, how would you calculate the minimum income needed to afford a home with a specific monthly payment?

• Divide the monthly payment by 0.28

• Multiply the monthly payment by 0.28

• Add 28% to the monthly payment

• Subtract 28% from the monthly payment

Multiple Select

Which of the following are good sources for finding homes during the initial selection process?

• Real estate section of the local newspaper

• Real estate Web sites

• Driving, biking & walking through neighborhoods

• All of the above

Open Ended

List two important criteria to consider when selecting a real estate agent.

Multiple Choice

Which of the following is NOT typically included in a house hunting checklist?

• Checking if the neighborhood is safe

• Ensuring the house has enough bedrooms and bathrooms

• Verifying if the house is energy efficient

• Looking for high quality schools in the area

Multiple Choice

Which of the following are important considerations when evaluating a neighborhood for a new home?

• Safety of the neighborhood

• Convenience of location

• Presence of a homeowners association

• All of the above

Open Ended

Based on the house hunting checklists provided, what are three important factors to consider when evaluating a potential home?

Multiple Choice

What is the main purpose of getting pre-qualified for a mortgage?

• To find out your credit score

• To have a better idea of affordability

• To choose a real estate agent

• To compare different neighborhoods

Open Ended

Besides downpayment, name two criteria you should compare when evaluating mortgage options.

Multiple Choice

Homeownership can provide which of the following benefits?

• A place to live and build equity

• Guaranteed increase in property value

• No responsibility for repairs

• No need for insurance

Open Ended

What is one important thing you learned about homeownership from today's lesson?