Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Quiz
Quiz
To help us track the demographics of the clients we serve, please answer the following questions. We will not share any of your individual personal information with any third party organization.
First name: Last name: Age:
State of residence: Annual Income ($):  

1. When analyzing your income for future home costs, it is best to be:

Realistic
Optimistic
Pessimistic


2. One recommended way to buy a home with a down payment of less than 20 percent is:

Negotiate with the seller to accept a smaller down payment
Obtain private mortgage insurance
Assure the lender that you will make up the 20 percent over the next year


3. PITI stands for:

Purchase, information, trust, investment
Payback, income, transaction, inventory
Principal, interest, taxes, and insurance


4. A ________ mortgage has an interest rate that remains constant over the life of the loan:

Fixed-rate
Adjustable rate
Interest only


5. To determine the loan amount you qualify for, a lender will calculate:

Income and long-term debt ratios
Asset and liability ratios
Earnings and eligibility ratios


6. Which is a true statement regarding taxes and homeownership?

Only mortgage interest is deductible on your income taxes
Only mortgage interest and property taxes are deductible on your income taxes
Only mortgage interest, property taxes, and insurance premiums are deductible on your income taxes


7. It is recommended that you check your credit reports for errors at least __________ before you plan to apply for financing:

Six months
60 days
30 days


8. To create a credit history and score that is attractive to lenders:

Avoid using credit for at least one year before you plan to purchase a home
Close all old accounts
Use credit responsibly and correct errors


9. A seller will know that your financing is in place if you have a loan ____________:

Pre-qualification
Pre-approval
Pre-accumulation


10. As a homebuyer, you have ________ hours to review all of the paperwork before the contract is finalized.

24
48
36

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