WorksheetsUnit 4 Purchasing a Home
Total questions: 25
Worksheet time: 13mins
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
What is a conventional mortgage?
A) A mortgage with an interest rate that can change over time.
B) A government-backed loan program for first-time homebuyers.
C) A standard mortgage not insured or guaranteed by the government.
D) A loan program for eligible veterans and their families.
Which type of mortgage has an interest rate that can change over time?
A) Conventional
B) Variable/Adjustable-Rate
C) FHA
D) VA
What does FHA stand for?
A) Federal Housing Administration
B) Federal Homeowners Association
C) First-time Homebuyers Association
D) Federal Housing Agency
Which loan program is available for eligible veterans and their families?
A) FHA
B) VA
C) Conventional
D) Variable/Adjustable-Rate
What is the purpose of a home inspection?
A) To evaluate the property's value to ensure it matches the loan amount.
B) To assess the property's condition to identify any issues.
C) To provide an opinion of a property’s fair market value.
D) To outline the terms and conditions of a real estate transaction.
What is a mortgage application?
A) A formal request for a loan to purchase the property.
B) A process of gradually paying off a loan over time.
C) An evaluation of the property's value.
D) An opinion of a property’s fair market value.
What is amortization?
A) The process of gradually paying off a loan over time through a series of equal installments.
B) The evaluation of the property's value to ensure it matches the loan amount.
C) An opinion of a property’s fair market value.
D) A legally binding agreement outlining the terms and conditions of a real estate transaction.
What is the appraisal process?
A) The process of gradually paying off a loan over time.
B) The evaluation of the property's value to ensure it matches the loan amount.
C) An opinion of a property’s fair market value.
D) A formal request for a loan to purchase the property.
What is an appraised value?
A) The process of gradually paying off a loan over time.
B) The evaluation of the property's value to ensure it matches the loan amount.
C) An opinion of a property’s fair market value.
D) A legally binding agreement outlining the terms and conditions of a real estate transaction.
What is a real estate contract?
A) A formal request for a loan to purchase the property.
B) A legally binding agreement outlining the terms and conditions of a real estate transaction.
C) An opinion of a property’s fair market value.
D) The process of gradually paying off a loan over time.
What does enforcement ensure in a real estate contract?
A) That the property’s value matches the loan amount.
B) That the property’s condition is assessed.
C) That all parties fulfill their obligations as outlined in the contract.
D) That the interest rate can change over time.
What is termination in the context of a real estate contract?
A) The process of gradually paying off a loan over time.
B) The evaluation of the property's value to ensure it matches the loan amount.
C) Ending a contract legally and addressing any consequences that may arise.
D) A formal request for a loan to purchase the property.
The final step in the home buying process where ownership of the property is transferred from the seller to the buyer. After this step a new deed of ownership will be filed with the county you will be living in
Closing
Buying
Selling
Application Process
Failure to fulfill your obligations for a mortgage loan will result in default, not only will the bank proceed with foreclosure but your credit score will decrease and the bank can place a ________________ against you.
Appraisal
Contract
Good Vibes
Judgement
Which of the following types of loan is suitable for homeowners who plan to move and sell their home before their fixed-rate period is up?
Bridge loan
USDA loan
Adjustable-rate loan
VA loan
