Module #10 Buying A Home

Why do mortgage brokers normally have no risk in the mortgage process?

All of the above

Which of the following statements is the most accurate about choosing guidelines for buying a home?

Ask yourself this question about any guideline: Does the person or company providing the guideline make more money if I follow their guideline? If the answer is yes, be careful. Question the guideline and compare it to other guidelines

What is the first step when you are in the market to buy a home?

Don't even think about looking at a place to buy until you understand your budget.

You buy a $3500 car and finance it through the car dealer. The contract says if you are two months delinquent with your payment the finance company can take the car back. What statement best describes this situation?

The car is collateral for my loan

You're deciding how much you can afford to pay each month on your mortgage loan. What monthly payment guideline should you follow?

This guideline is issued by a group that makes absolutely no money on selling mortgages. The group only offers advice on ways to spend responsibly - and their services are free

It is almost impossible to buy a house these days without a sizable down payment

True

Many conservative consumer advocates said you should not pay more than 25% of your TAKE-HOME PAY on a mortgage payment

True

Normally, mortgage brokers have nothing to lose by encouraging you to get a bigger loan than you may be able to afford

True

What is a good definition of "house poor"?

You can't save any money because you need every dime just to pay your mortgage and bills.

What is a good reason to buy a house?

You have a good amount of money you can use as your down payment