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How to Buy a House

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

How much of a down payment do you have to make if you get a conventional loan

a)

10 to 20%

b)

3.5 %

2.

what credit score do you need to get the lowest interest rate possible on your mortgage loan?

a)

at least 400

b)

above 740

c)

at least 500

d)

at least 650

3.

Which of the following is going to prevent you from getting a loan to buy a house? (check all that apply)

a)

low credit score

b)

debt

c)

nothing can prevent you from getting a loan as long as you have money for the down payment.

4.

What should you do before you start looking at properties?

a)

call a real estate agent

b)

talk to a lender to see how much of a loan you're going to qualify for based on your credit score an income. That way, you're not wasting your time looking at 3 million dollar homes when the bank is only going to loan you $400k

5.

which of the following things will a lender want from you to determine how much loan money you qualify for? (check all that apply)

a)

1 to 2 years of tax returns (to prove income)

b)

full credit report and score

c)

the last 2-6 months of banks statements

d)

Recent paystubs

6.

what types of inspections should you have done on a house before you actually close and purchase it

a)

plumbing, electric and roof

b)

inspect everything!....if it's something that can be inspected ...have it inspected....expect to pay $1500 on inspections alone

c)

none..trust the seller..the house is fine

d)

none...if the real estate agent is showing it to you..then it must be safe

7.

The bank will require an appraisal of the house before giving you a loan. What's the purpose of the appraisal?

a)

The bank wants to have that information on file

b)

The bank wants to know how much money the house is actually worth so that they give you the exact amount of money you need to buy the house and not a penny more.

c)

The bank is just being annoying

8.

What should you do to make up for the thousands of dollars you will have to spend in "fees" to close on the home?

a)

there's nothing you can do it

b)

you can ask the seller to take some money off the price of the house. You can site the reason as "repairs" that you found that you're going to have to make.

9.

Based on the type of mortgage, you can compare with: estimated monthly payments, the interest rate, and how large a down payment you plan to make.

a)

True

b)

False

10.

What must be shown to prove that the borrower can pay the mortgage loan?

a)

Tax returns, bank statements and current job

b)

Home ownership, bank statements and current job

c)

Tax returns, bank statements and it does not matter if the borrower is unemployed

11.

what will happen if you don't pay your mortgage?

a)

You can lose your property

b)

You can win other propert

c)

You can lose your family xd

12.
What happens to the cost of a loan when the APR is higher?
a)
Loan cost increases
b)
Loan cost decreases
c)
No change
13.
What happens to the loan amount when you put down a larger down payment?
a)
Decreases
b)
Increases
c)
No change
14.
What is the consequence of having a poor credit score?
a)
None of these answers are correct
b)
May pay a higher APR
c)
May pay a lower APR
d)
Go to jail
15.
You want to pay less in overall interest. Every loan APR is the same. Select the best mortgage for you.
a)
10 year loan
b)
15 year loan
c)
20 year loan
d)
30 year loan
16.
There are times that renting is better than buying.
a)
Agree
b)
Disagree
17.
Assuming you do not overborrow or overpay, have a stable job, and have no desire to move, buying your own home is usually a better choice than renting.
a)
Agree
b)
Disagree
18.

The normal _______ for a mortgage is up to 30 years

a)

Term

b)

Interest Rate

c)

Loan

19.

The fee a bank charges to loan you money is called ________________.

a)

mortgage

b)

principal

c)

interest

20.

What is the money you borrow called?

a)

interest

b)

principal

c)

down payment

21.

Monthly payment is made up of the prinicpal and the interest.

a)

True

b)

False