Lesson 17 Quiz

What do most people do when they first go out on their own?

• Become homeless

• Invest in a multi unit building

• Rent

• But a house

T OR F: 80% of households live in properties they own.

• True

• False

Why do people prefer to rent?

• The hassle of maintaining it and the yard

• Not being able to invest in other wealth-building assets

• Not having amentities

• Allows mobility

Two answers: What is something you should consider when looking to rent?

• Condition

• If the sun faces the window

• Value

• How low the grass gets cut

What is the upside of owning a home?

• Your house does not become an asset

• Your money goes into someone else’s pocket

• As long as you keep up the mortgage you can’t be evicted

What are things that can depress the value of real estate?

• Bugs

• Natural disasters

• Too many animals

• A homeless person outside your house

T or F: When you make an offer on a house, you are expected to have a certain amount of money in cash as a down payment?

• False

• True

What is the ideal down payment?

• 50 or 60%

• 30 or 40%

• 10 or 20%

• 80 or 90%

What is the first thing you should do once you’ve calculated what you can afford for house payments?

• Guess on which special loan program you are eligible for

• Don’t check your FICO score

• Get pre-approved by a lender

T or F: You can’t look on the internet or check with your own bank or credit union to obtain a pre-approval on a loan?

• True

• False