Quiz about Buying A Home

Question 1

_________ are the expenses incurred in transferring ownership from buyer to seller in a real estate transaction

Accepted Answer

Closing Cost

Answer

Equity

Answer

Mortgage

Answer

Fixed Rate

Question 2

A loan to purchase real estate is called a(n)

Accepted Answer

Mortgage

Answer

MLS

Answer

Title Search

Answer

Lien

Question 3

A rejection of an original offer with a listing of what terms would be acceptable is called a(n)

Accepted Answer

Sellers Counter Offer

Answer

TItle Search

Answer

MLS

Answer

Market

Question 4

The difference between the market value of property and the amount owed on it is called

Accepted Answer

Equity

Answer

Fixed Rate

Answer

Commission Income

Answer

Appraised

Question 5

The _____ is a real estate marketing service in which agents pool their home listings and agree to share commissions on the sales.

Accepted Answer

MLS

Answer

Appraised

Answer

Title Search

Answer

Lien

Question 6

A(n) ________ is a formal document that expresses interest in entering into a real estate contract with someone else.

Accepted Answer

Earnest Money Offer

Answer

Closing Cost

Answer

Title Search

Answer

Deed

Question 7

A value given a home by a real estate appraiser is called its _____ value.

Accepted Answer

Appraised

Answer

Contingancies

Answer

Fixed Rate

Answer

Equity

Question 8

The ______ value is used for purposes of computing property taxes owed against a home.

Accepted Answer

Assessed

Answer

Equity

Answer

Conventional

Answer

Apraised

Question 9

A(n) _____ loan is a mortgage agreement offered through a commercial bank or mortgage broker that does not have government backing.

Accepted Answer

Conventional

Answer

Equity

Answer

Market

Answer

Deed

Question 10

A(n) _______ is the process of searching public records to check for ownership and claims to a piece of property.

Accepted Answer

Title Search

Answer

Deed

Answer

Fixed Rate

Answer

Convention

Question 11

Real Estate agents earn ______ for their work, which is a percentage of the home sale price.

Accepted Answer

Commission Income

Answer

Fixed Rate

Answer

Fixed Rate

Answer

Closing Cost

Question 12

__________ are conditions that limit a buyer's liability in case one or more of them are not met.

Accepted Answer

Contingancies

Answer

Conventional

Answer

Lien

Answer

Sellers Acceptance

Question 13

A(n) _______ mortgage is one whereby the interest rate does not change during the term of the loan.

Accepted Answer

Fixed Rate

Answer

Conventional

Answer

Lien

Answer

Market

Question 14

The _____ value of a home is the highest price that the property will bring on the market.

Accepted Answer

Market Value

Answer

Equity

Answer

Assessed

Answer

Deed

Question 15

A(n) _______ is a formal agreement to the terms of the buyer's offer.

Accepted Answer

Sellers Acceptance

Answer

Sellers Counter Offer

Answer

MLS

Answer

Deed

Question 16

A(n) ______ is a financial claim against the property.

Accepted Answer

Lien

Answer

MLS

Answer

Equity

Answer

Deed

Question 17

________ protects the buyer from any claims arising from a defective title.

Accepted Answer

Title Insurance

Answer

Equity

Answer

MLS

Answer

Deed

Question 18

A(n) ________ mortgage is one whereby the interest rate changes in response to the movement of interest rates in the economy.

Accepted Answer

Adjustable Rate

Answer

Deed

Answer

Conventional

Answer

Fixed Rate

Question 19

A(n) _________ is the legal document that transfers title of real property.

Accepted Answer

Deed

Answer

Lien

Answer

MLS

Answer

Equity

Question 20

The interest you pay on your home loan, along with the property taxes, are tax deductible.

Accepted Answer

True

Answer

False

Question 21

Renting or owning real estate is a type of tax shelter.

Accepted Answer

False

Answer

True

Question 22

The most common source for down payment money is a bank.

Accepted Answer

False

Answer

True

Question 23

Each loan payment you make decreases your debt and increases your equity.

Accepted Answer

True

Answer

False

Question 24

A lien is a right or privilege one person has to use the land of another person.

Accepted Answer

False

Answer

True

Question 25

The Multiple Listing Service (MLS) gives people wanting to buy a home a greater exposure to available homes.

Accepted Answer

True

Answer

False

Question 26

When a seller accepts an offer exactly as stated, this is called a counter offer.

Accepted Answer

False

Answer

True

Question 27

The seller pays the real estate agent's commission.

Accepted Answer

True

Answer

False

Question 28

Most lenders require that the borrower buy title insurance.

Accepted Answer

True

Answer

False

Question 29

If you and the seller have agreed on the transaction, the house will be taken off the market until the deal is completed.

Accepted Answer

True

Answer

False

Question 30

Home ownership offers

Accepted Answer

All of these

Answer

Financial Advantages

Answer

Quality of Life Advantages

Answer

Tax Savings

Question 31

A legal document that establishes ownership is a(n)

Accepted Answer

title

Answer

lien

Answer

counteroffer

Answer

escrow

Question 32

The cost of home ownership is lowered through

Accepted Answer

tax deductions

Answer

property insurance

Answer

home maintenance

Answer

all of these

Question 33

Real Estate agents earn commissions that are usually between _______ percent of the home sale price.

Accepted Answer

6 and 8

Answer

3 and 5

Answer

10 and 12

Answer

12 and 15

Question 34

Earnest money protects the

Accepted Answer

Seller

Answer

Buyer

Answer

Real Estate Agent

Answer

Lender

Question 35

When you apply for a mortgage, which of the following will be checked?

Accepted Answer

all of these

Answer

Your references

Answer

Your credit history

Answer

Your income

Question 36

To qualify for a conventional loan to purchase a home, a borrower must

Accepted Answer

Have a good credit credit score

Answer

Be a low-income buyer

Answer

Be a first-time home buyer

Answer

have collateral to secure the loan

Question 37

To finance your purchase of a house, you must

Accepted Answer

all of these

Answer

have funds for the down payment

Answer

meet certain lending requirements

Answer

select the type of mortgage you want

Question 38

Who conducts a title search and issues a report?

Accepted Answer

a title insurance company

Answer

an attorney

Answer

a real estate agent

Answer

the buyer of real estate

Question 39

Real estate agents use comps to get a general idea of property's _______ value, which helps sellers establish a list price for their home.

Accepted Answer

Estimated

Answer

Appraised

Answer

Assessed

Answer

Market

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