Real Estate and Home-buying Quiz

What is the definition of Equity in the context of home-buying?

• Loan to finance the purchase of real estate

• Value of an owner's share in a property; value minus debt

• Process during which the title to the property is transferred to the buyer

• Record of how an individual has repaid debts in the past

What does a Mortgage refer to?

• Increase in price levels and reduction in the value of money

• Loan to finance the purchase of real estate

• Written proof a lender is willing and ready to lend to an individual

• Detailed written document which becomes a legally binding contract once signed

What is Inflation?

• Process during which the title to the property is transferred to the buyer

• Value of an owner's share in a property; value minus debt

• Increase in price levels and reduction in the value of money

• Percentage of a person's income which goes toward paying debts

What does the Debt-to-income Ratio help to measure?

• The value of an owner's share in a property

• An individual's ability to borrow

• The interest charged by a lender for the use of borrowed money

• The duties of a Real Estate Agent

What is Credit History used for?

• To provide written proof of a lender's willingness to lend

• To measure the individual's ability to borrow

• To negotiate and arrange real estate sales

• To state the fulfillment of a contract depends on certain conditions

What is Interest in the context of borrowing money?

• The process of transferring the title to the property to the buyer

• The value of an owner's share in a property

• The fee charged by a lender for the use of borrowed money

• A provision stating fulfillment of a contract depends on certain conditions

What is Pre-approval?

• A detailed written document which becomes a legally binding contract once signed

• A loan to finance the purchase of real estate

• Written proof a lender is willing and ready to lend to an individual a specific amount for a mortgage

• The process during which the title to the property is transferred to the buyer

What is the role of a Real Estate Agent?

• To provide a loan for the purchase of real estate

• To measure an individual's ability to borrow

• To negotiate and arrange real estate sales

• To provide written proof of a lender's willingness to lend

What is an Offer to Purchase?

• A loan to finance the purchase of real estate

• A provision stating fulfillment of a contract depends on certain conditions

• A detailed written document which becomes a legally binding contract once signed by both parties

• The process during which the title to the property is transferred to the buyer

What does Contingency mean in a real estate contract?

• The fee charged by a lender for the use of borrowed money

• A provision stating fulfillment of a contract depends on certain conditions

• The value of an owner's share in a property

• Written proof a lender is willing and ready to lend to an individual