Home Buying Quiz

What should you consider when looking to rent an apartment?

• Cost

• How close it is to your job

• How close it is to public transportation

• The neighbors

• The landlord

Which of the following is true about the security deposit?

• The deposit is used to pay for security guards and cameras around the building

• The deposit can be used to repair damage caused by the tenant during the terms of the lease

• The deposit can never be greater than $100

• The deposit is kept by the landlord to cover his management costs

The landlord has the right to do which of the following:

• Remove you from the apartment if they found someone else they like better

• Kick you out if you lose your job

• Enter your apartment whenever they feel like it

• Charge you the late fee stated in your lease if your rent payment is late

A rental agreement is often referred to as:

• a mortgage

• a tenant

• an amenity

• a lease

Rent is defined as:

• an advance payment for costs beyond normal wear and tear

• the fee charged for performing property management tasks

• the cost of using someone else’s property

• the purchase price of a housing unit

The location of a home is important because:

• Not all locations have good school systems or the same amenities

• Homes in good locations will usually appreciate in value

• A good location will make a home easier to sell later

• Home is a good location can be safer to live

A house has an assessed value of $400,000. If the property tax is 9 percent, calculate the property tax.

• $24,000

• $30,000

• $36,000

• $42,000

If a borrower can no longer or has stopped making payments the bank will __________________ on the home.

• Bankruptcy

• Liquidation

• Foreclosure

• Repossession

All of the following would be considered closing costs EXCEPT _____?

• A title search

• Cost of repainting the kitchen before moving in

• Fee for obtaining credit report

• Title insurance

What is an escrow account?

• An account used by the lender for calculating closing costs associated with setting up the mortgage

• An emergency savings account is used for paying housing expenses, such as maintenance and repairs

• An account in which money is held by a third party for safekeeping until property taxes need to be paid

• An account in which financial claims against the property are stored until they are filed in court