Home Owners Course Pre-test (Clearpoint) March 2022

Which of the following is not an outcome of contract negotiations?

Objection

As a new homeowner, you should establish a budget to ensure you are able to meet all of your living expenses comfortably. How many months of living expenses should you put aside in savings?

3-6 months

For an FHA loan, your mortgage payment should not exceed what percentage of your gross monthly income?

31%

A mortgage loan with an interest rate that changes based on changing factors in the economy is called:

Adjustable rate loan

Which individual establishes the value of real property for sale or refinance?

Appraiser

For a conventional loan, your monthly mortgage payment should not exceed what percentage of your gross monthly income?

28%

Down payment assistance funds can be used to pay which of the following?

All of the above

Which individual represents a lender in a real estate closing transaction?

Closing Attorney

If you do not receive your monthly statement in time to make your first mortgage payment, details can also be found on which form?

Closing Disclosure

Which document will list your final monthly mortgage payment at closing?

Closing Disclosure

This individual is trained to examine homes and all of the structural and mechanical systems within a home.

Home Inspector

The document a mortgage professional provides you that outlines your anticipated cost to settle the loan transaction is referred to as:

Loan Estimate

When making arrangements to move, you should consult all of the following EXCEPT:

Mortgage company

When an individual has to sell their primary residence quickly, this person is referred to as:

Motivated seller

Which of the following factors should not influence your decision to buy a home?

Political

The key to minimizing the stress associated with moving into your new home is:

Preparation

The initial process of determining how much house you can afford is known as:

Prequalification

What items typically make up your entire monthly mortgage payment?

Principal, interest, mortgage insurance, taxes

Insurance that replaces damaged property, both to items in the home and to the home itself is known as:

Replacement cost insurance

Negative information remains on your credit report for how many years?

Seven years

John's co-worker knows he is interested in purchasing a home and told him about an information session that addresses locating down payment funds. The meeting is being held at the local library in a couple of weeks. This type of goal is considered:

Short-term

Before a final approval can be issued, the person who issues a conditional approval outlining a commitment to lend you funds to purchase your home along with a list of required items is the:

Underwriter

One of the best ways to find out where your money goes every month is to:

Track your expenses

Cable, cell phone and going to the movies are examples of:

Wants