Home Buying Expenses

The first step in the home-buying process according to the presentation is (a)   .

• Price the property
• Obtain financing
• Determine home ownership needs
• Close the purchase transaction

What is the final step in the home-buying process ?

• Determine home ownership needs

• Price the property

• Obtain financing

• Close the purchase transaction

Why is it advised not to fixate on the listed sales price alone?

• It might include hidden charges

• It includes all necessary fees

• It is always negotiable

• It might cause one to overlook other fees and expenses

What should first-time home buyers prepare for in addition to the upfront expenses?

• Future renovation costs

• Neighbors' approval

• Fees

• Furniture costs

If you buy a $200,000 home and make a 10% down payment, how much money will you need to bring to closing?

• $2,000

• $20,000

• $200,000

• $10,000

What is the purpose of earnest money in a home buying process?

• To cover the real estate agent's fees

• To prove to the seller that the buyer is serious about purchasing

• To pay for the home inspection

• To fund the initial home insurance

What happens to the earnest money once the home purchase deal is finalized?

• It is refunded to the buyer

• It is given to the real estate agent

• It is applied to the buyer's down payment or closing costs

• It is forfeited to the seller

What could happen if there is no contingency in the purchase agreement for the earnest money?

• The earnest money can be doubled

• The buyer can automatically own the property

• The buyer could lose the earnest money if the deal falls through

• The seller must return the earnest money regardless of the deal outcome

What are closing costs primarily used to pay for when buying a home?

• Furniture and moving expenses

• Appraisal, title insurance, origination fee, lender fee, and inspections

• Property taxes for the first year

• Home decoration and renovation

When are closing costs typically due at the time of purchasing a home?

• After one year of occupancy

• At the time of the loan application

• At the end of escrow, when you close on the loan.

• When the mortgage is fully paid off