About This QuizBuying a home can be both thrilling and frustrating, but knowing how the process works beforehand will give you a leg up in your search. Take the House Buying Quiz to see how much you know.
Which of the following should you do before you start shopping for a house?
sell your house
check your credit score
Check your credit score well ahead of the home-shopping process. If you discover an error, you'll have plenty of time to go through the official process of correcting it.
shop for furniture
When shopping for a house, you should also be shopping for a loan. Which status should you seek to give you an upper hand with a seller?
When shopping for a house, getting pre-approved for a loan is ideal. Although pre-qualification is free, it's very unofficial and often unreliable. Pre-approval means a lender has looked into your credit and financial situation more closely and will make you look like a serious buyer to the seller.
What is amortization?
the process of taking out a second mortgage
the process of drowning in debt from a mortgage
the process of paying off the mortgage gradually
Amortization is the process of paying off the principal of a loan in incremental payments that gradually chip away at the principal.
Which of the following mortgage terms gives you the maximum tax advantage?
15-year fixed rate
20-year fixed rate
30-year fixed rate
The 30-year term gives you the maximum tax advantage by having the greatest interest deduction.
What percent down payment should you make in order to avoid having to get private mortgage insurance?
Unless you pay at least a 20-percent down payment, you'll also have to pay private mortgage insurance (PMI). This can sometimes be pretty expensive, so it makes sense to put as much into your down payment as you can.
How much should you expect to pay for a professional home inspection?
$50 to $100
$200 to $500
Professional Inspections cost anywhere from $200-$500 but are well worth it. Even with new construction, there can be hidden problems that only a professional inspector may find.
$800 to $1100
Which of the following types of real estate agent works for an office that does not take listings of any kind and represents only buyers?
exclusive buyer agent
An exclusive buyer agent (EBA) works for an office that represents only buyers and does not list properties. A single agency buyer agent (SA) works for an office that represents both buyers and sellers but will not represent both in one transaction. A traditional buyer agent (BA) might work as a dual agent, representing both buyer and seller in one transaction.
single agency buyer agent
If you sign an agreement with a buyer's agent, which kind of clause should you make sure the contract includes?
fee escalation clause
Make sure you have a "release clause" in your buyer's agency agreement just in case you find out you just don't like your agent. This will allow you to sever ties without any future problems.
After a seller has told you he has agreed to accept your offer and then backs out, what's your legal recourse?
You can sue him and most likely get the house back.
You can sue him for fraud and damages, but you probably won't get the house in the end.
You have none -- a verbal agreement is non-binding.
Unfortunately, there's not much you can do short of pleading with the seller. Verbal agreements aren't binding, and you'll find that you have little legal recourse.
Which of the following isn't a typical fee you'll have to pay in closing costs as a buyer?
seller's agent fee
The seller is responsible for paying the seller's agent, not the buyer. The escrow fee is a typical fee for a neutral third party to hold the funds during negotiations. A notary should be paid to notarize the documents.