Buying a house

Front

What is the primary purpose of a home appraisal in the mortgage process?

Back

To assess the market value of the property.

Front

What is pre-approval in the context of mortgages?

Back

Written proof a lender is willing and ready to lend an individual a specific amount of money for a mortgage based on verified income and assets.

Front

What happens to the loan amount when you put down a larger down payment?

Back

The loan amount decreases.

Front

Which factor affects the monthly payment on a house?

Back

Credit Score.

Front

What factors can influence the interest rate on a mortgage?

Back

Credit score, loan amount, loan term, type of loan, economic conditions, lender's policies.

Front

What is a down payment?

Back

An initial payment made when purchasing a property, typically expressed as a percentage of the purchase price.

Front

What is a mortgage?

Back

A loan specifically for purchasing real estate, where the property serves as collateral.

Front

What is the difference between fixed-rate and adjustable-rate mortgages?

Back

Fixed-rate mortgages have a constant interest rate throughout the loan term, while adjustable-rate mortgages have interest rates that can change periodically.

Front

What is the significance of a credit score in the mortgage process?

Back

A credit score helps lenders assess the risk of lending money and can influence the interest rate offered.

Front

What is an escrow account?

Back

An account where funds are held by a third party to pay property taxes and insurance on behalf of the borrower.