Home Owners Course Pre-test (Clearpoint)
Which document will list your monthly mortgage payment at settlement? Select one: a. Attorney Closing Statement b. Home Owners Insurance c. HUD 1 Settlement Statement d. Buyer's Agreement e. Real Estate Contract
c. HUD 1 Settlement Statement
This individual is trained to examine homes and all of the structural and mechanical systems within a home. Select one: a. Property Surveyor b. Appraiser c. Home Inspector d. Land Use Inspector
c. Home Inspector
Insurance that replaces damaged property, both to items in the home and to the home itself is known as: Select one: a. Comprehensive cost insurance b. Replacement cost insurance c. Liability cost insurance d. Cost assessment insurance
b. Replacement cost insurance
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: Select one: a. Appraiser b. Underwriter c. Closing Attorney d. Realtor
b. Underwriter
Which individual represents a lender in a real estate closing transaction? Select one: a. Buyer's Real Estate Agent b. Seller's Real Estate Agent c. Mortgage Professional d. Closing Attorney
d. Closing Attorney
Which of the following is not an outcome of contract negotiations? Select one: a. Counter offer b. Rejection c. Acceptance d. Objection
d. Objection
What items typically make up your entire monthly mortgage payment? Select one: a. Principal, interest b. Principal, interest, mortgage insurance c. Principal, taxes d. Principal, interest, mortgage insurance, taxes
d. Principal, interest, mortgage insurance, taxes
If you do not receive your monthly statement in time to make your first payment, the _____ will list the address for payment, as well. Select one: a. Pre-qualification Letter b. Truth in Lending c. Lender's contact sheet d. Settlement Statement
d. Settlement Statement
One of the best ways to find out where your money goes every month is to: Select one: a. Pay your debts in 60-day intervals b. Only spend money on your fixed expenses c. Consolidate your expenses d. Track your expenses
d. Track your expenses
Which of the following factors should not influence your decision to buy a home? Select one: a. Emotional b. Political c. Economic d. Social
b. Political
The key to minimizing the stress associated with moving into your new home is: Select one: a. Education b. Preparation c. Realization d. Activation
b. Preparation
Which individual establishes the value of real property for sale or refinance? Select one: a. Appraiser b. Land Surveyor c. Tax Assessor d. Home Inspector
a. Appraiser
The initial process of determining how much house you can afford is known as: Select one: a. Prequalification b. Good Faith Estimate c. Notification d. Truth in Lending
a. Prequalification
Negative information remains on your credit report for how many years? Select one: a. Seven years b. Eleven years c. Forever d. Five years
a. Seven years
Cable, cell phone and going to the movies are examples of: Select one: a. Wants b. Priorities c. Needs d. Essentials
a. Wants
For an FHA loan, your mortgage payment cannot exceed what percentage of your gross monthly income? Select one: a. 31% b. 36% c. 43% d. 28%
a. 31%
A mortgage loan with an interest rate that changes based on changing factors in the economy is called: Select one: a. Adjustable rate loan b. 15 year loan term c. 80/20 loan d. 30 year loan term
a. Adjustable rate loan
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? Select one: a. 1-2 months b. 3-6 months c. 2-3 months d. 9-12 months
b. 3-6 months
For a conventional loan, your mortgage payment cannot exceed what percentage of your gross monthly income? Select one: a. 28% b. 31% c. 43% d. 36%
b. 31%
The document a mortgage professional provides you that outlines your anticipated cost to settle the loan transaction is referred to as: Select one: a. Truth in Lending b. Good Faith Estimate c. Finance Charges Addendum d. Mortgage Loan Origination Agreement
b. Good Faith Estimate
When an individual has to sell their primary residence quickly, this person is referred to as: Select one: a. Uninspired seller b. Motivated seller c. Motivated buyer d. Deflated seller
b. Motivated seller
When making arrangements to move, you should consult all of the following EXCEPT: Select one: a. Utility company b. Professional movers c. Mortgage company d. Truck rental company
c. Mortgage company
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. Select one: a. Intermediate b. Long-term c. Short-term d. Mid-range
c. Short-term
Down payment assistance funds can be used to pay which of the following? Select one: a. Down payment b. Closing costs c. Pre-paids d. All of the above
d. All of the above
