Homeownership & Closing

What are closing costs?

• a. Fees paid during a home inspection

• b. Fees paid at the beginning of a home purchase

• c. Fees paid at the end of a home buying/selling transaction

• d. Fees paid for home renovations

What is the typical range for closing costs as a percentage of the home's purchase price?

• 0.5% - 2%

• 1% - 4%

• 
  3% - 6%

• 5% - 10%

What is covered by legal fees in closing costs?

• Home inspection fees

• Registration of title & mortgage, disbursements

• Pest control services

• Landscaping services

What is the purpose of bank appraisal fees?

• To estimate the price the bank can sell your home for if you default

• To pay for home insurance

• To transfer the name on the title

• To adjust taxes and utilities

What does the adjustment of taxes & utilities ensure?

• The bank has appraised the property value

• The home is properly insured

• The house is free of pests

• Fair division of annual costs between buyer and seller

Why is home and fire insurance required by most mortgage lenders?

• To pay for utility adjustments

• To ensure the property is free from defects

• To protect the bank’s investment

• To cover closing costs

Which of the following is NOT a common closing cost?

• Home & fire insurance

• Real estate agent commission

• Legal fees

• Title insurance

What is the cost element associated with transferring the name on the title of a property?

• Legal fees

• Bank appraisal fee

• Land title transfer tax

• Home & fire insurance

What is typically the first step in the homeownership process?

• Finding a real estate agent

• Securing a mortgage

• Setting a budget

• Making an offer on a house

Which of the following is a common type of mortgage?

• Personal loan

• Auto loan

• Student loan

• Fixed-rate mortgage