Chapter 11: Housing and Real Estate (Ramsey Classroom)

To make living with a roommate more peaceful while you're saving money...

• Communicate, be respectful, and be considerate

• Require your roommate to pay a larger rent check than you do

• Avoid talking to them in order to avoid conflict

• Assume that your best friend will make a great roommate

Your decision to rent or buy depends on your _________.

• Financial situation

• Income tax

• Friends' opinions

• Feelings towards renting or buying

It is impossible to get a mortgage without a credit score.

• True

• False

Renting is a great option for many people.

• True

• False

When someone spends so much of their income on the costs of homeownership that they struggle to reach their other financial goals, they are _______.

• Rent poor

• Wise homeowners

• House poor

• Wealthy

After you hire a real estate agent, the next step in the process is to _____________.

• Make an offer on a home

• Start looking at homes within your budget

• Get a home inspection

• Close on your new home

The only time it's okay to borrow money if you can't pay 100% in cash is . . .

• Getting a car lease

• For home improvement projects

• Buying a home (mortgage)

• Renting a home

A leasing contract...

• Can be terminated at any time without any fees or penalties

• Is a legal document that allows the renter (tenant) to use the property for a period of time

• Is something a roommate owes taxes on when they move in with the current renter

• Should be signed immediately, even before reading it

It's important to read your leasing contract, because once you sign it, is enforceable by law.

• True

• False

What does cost of living refer to?

• How much of your monthly income is budgeted specifically for your rent or mortgage

• The average cost of the basic goods and services needed to maintain a certain standard of living

• The level of wealth, comfort, material goods and necessities available to a group of people

• How wealthy or poor you are at the time of purchasing your first home