Section 11: Unit 5/Exam

Your clients are first-time home buyers. They can access up to _________ of their Roth IRA accounts, penalty free, for their down payment.

$10,000

What is the best-case scenario with a debt-to-income ratio?

20% debt-to-income

From a lender's perspective, what does a credit score on the low end indicate?

Higher risk

As a real estate licensee, you should ______.

Understand what helps your buyer qualify for a mortgage

When your clients improve their credit score, they _____________.

Are likely to get better rates

Improving credit scores can also _____________________.

Increase how much house the borrower can afford

What is one way to improve your debt-to-income ratio without reducing your debt?

Increase income

Buyers who want to look good to lenders prior to financing should employ which of the following strategies?

Reduce credit, but retain cash reserves