Unit 4 Purchasing a Home

What is a mortgage?

• A type of insurance for homeowners

• A loan used to buy a home or other real estate

• A tax paid by homeowners

• A legal decision impacting credit scores

What does the term "mortgage rates" refer to?

• The cost of home insurance

• The interest rate charged on a mortgage loan

• The initial payment made by the buyer

• The final step in the home-buying process

What is a down payment?

• The interest rate on a mortgage

• The final step in the home-buying process

• Initial payment made by the buyer when purchasing a home

• Taxes paid by homeowners

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

• Making an offer

• Prequalification

• Closing

• Searching for properties

What is the difference between prequalification and pre approval?

• Prequalification is a thorough process, while pre approval is an estimate

• Prequalification is an estimate, while pre approval is a thorough process

• Prequalification involves making an offer, while pre approval involves closing

• Prequalification is the final step, while pre approval is the initial step

What are property taxes?

• Taxes paid by homeowners based on the value of their property

• Initial payment made by the buyer

• The interest rate charged on a mortgage loan

• Legal decisions impacting credit scores

What does the term "accepted offer" mean in real estate?

• The initial payment made by the buyer

• An agreement between a buyer and seller on the sale terms

• The final step in the home-buying process

• The interest rate charged on a mortgage loan

What is a credit score?

• A type of loan for purchasing real estate

• A numerical representation of an individual's creditworthiness

• A legal decision impacting loan security

• A tax paid by homeowners

What are judgments in the context of real estate?

• The interest rate charged on a mortgage loan

• Legal decisions that may impact a person's credit score and ability to secure loans

• Initial payment made by the buyer

• Taxes paid by homeowners

What is the process of determining whether a person meets the requirements to obtain a mortgage loan called?

• Prequalification

• Closing

• Qualification

• Making an offer