Buying a Home

What is equity?

• How much you owe on your mortgage

• The amount other homes in your area are being sold for

• How much your home value has increased over time

• The difference between what you owe on your mortgage and current home worth

What information do you need to provide lenders to get preapproved for a mortgage?

• Pay stubs, credit check, bank statements

• Down payment amount and desired mortgage amount

• W-2 statements and signed, personal and business tax returns

• All of the above

Which of these loans protects you from rising interest rates?

• Adjustable-rate mortgage

• FHA loan

• Fixed-rate loan

• VA loan

What fees can you expect when closing on a home

• Application fee

• Closing fee

• Home inspection

• All of the above

What expenses are expected when owning a home?

• Mortgage

• Property tax

• Insurance

• All of the above

What is the recommended percentage of income you should spend on a monthly mortgage payment?

• 15-20%

• 20-35%

• 35-40%

• 45-55%

You can fall behind how many months before a lender will start foreclosure steps?

• 2 months

• 3 months

• 4 months

• 5 months

What kind of credit score do lenders look for from potential home buyers?

• 580-620

• 620-700

• 640-760

• All of the above

Getting approved with a low credit score is possible, but buyers will pay in high interest charges.

• True

• False

What word means the part of the price paid at the time of purchase?

• Down Payment

• Financed

• Interest

• Mortgage

• Principal