HUD EXAM- HOMEOWNERSHIP
Questions and Answers
1. Which factor is best for housing counselors to use when
determining how much a client can afford to spend on purchasing
a home?
A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above: D. Options A, B, and C
2. A person or company that makes loans for real estate purchases.
"Loan offi- cer" is a related term that refers to a representative of
a lending or mortgage company who is responsible for soliciting
homebuyers and for qualifying and processing loans.: Lender
3. A government official responsible for determining the value of a
property for taxation purpose.: Assessor
4. A professional who conducts an inspection of the home's structure
and me- chanical systems to determine quality, soundness, and
,safety. S/he makes the potential homebuyer aware of any repairs
that may be necessary.: Home Inspector
5. A lender's representative who analyzes a loan application, the
potential bor- rower's credit history, and a judgement of the
property value to determine the amount of risk involved in making
the loan.: Underwriter
6. A professional who gives an estimate of a property's fair market
value based on the sales of comparable homes in the area and on
the property's features. This estimate is generally required by a
lender before loan approval to ensure that the mortgage loan
amount is not more than the value of the property.: Ap- praiser
7. Which statement most accurately describes a member of the
homebuying team?
A. a real estate agent or broker is typically an attorney or works for
an escrow company. S/he oversees the final transaction in
property purchase, at which time the title is transferred from the
seller to the buyer.
B. The lender requires an assessment of the home by a home
inspector before loan approval
C. An insurance agent is also know as a settlement agent.
D. a home inspector is generally paid by the buyer.: D. A home inspector is
generally paid by the buyer
, 8. Which piece of advice would you give to clients as they begin the
process of obtaining financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone
calls.: B. Have all potential lenders pull credit within a 30-day window.
9. All of the following is information necessary for your client
to gather in preparation for filling out the URLA, except:
A. Figures related to income from child support.
B. Figures related to student loans
C. Year home was built
D. Referrals of past landlords: D. Referrals of past lenders
10. All of the following statements describe working with an
appraiser during the "obtaining financing" step of purchasing a
home, except:
A. it is improper for an appraiser to consider racial or religious
background of a neighborhood's residents to determine the
value of a home.
B. Lenders hire appraisers
Questions and Answers
1. Which factor is best for housing counselors to use when
determining how much a client can afford to spend on purchasing
a home?
A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above: D. Options A, B, and C
2. A person or company that makes loans for real estate purchases.
"Loan offi- cer" is a related term that refers to a representative of
a lending or mortgage company who is responsible for soliciting
homebuyers and for qualifying and processing loans.: Lender
3. A government official responsible for determining the value of a
property for taxation purpose.: Assessor
4. A professional who conducts an inspection of the home's structure
and me- chanical systems to determine quality, soundness, and
,safety. S/he makes the potential homebuyer aware of any repairs
that may be necessary.: Home Inspector
5. A lender's representative who analyzes a loan application, the
potential bor- rower's credit history, and a judgement of the
property value to determine the amount of risk involved in making
the loan.: Underwriter
6. A professional who gives an estimate of a property's fair market
value based on the sales of comparable homes in the area and on
the property's features. This estimate is generally required by a
lender before loan approval to ensure that the mortgage loan
amount is not more than the value of the property.: Ap- praiser
7. Which statement most accurately describes a member of the
homebuying team?
A. a real estate agent or broker is typically an attorney or works for
an escrow company. S/he oversees the final transaction in
property purchase, at which time the title is transferred from the
seller to the buyer.
B. The lender requires an assessment of the home by a home
inspector before loan approval
C. An insurance agent is also know as a settlement agent.
D. a home inspector is generally paid by the buyer.: D. A home inspector is
generally paid by the buyer
, 8. Which piece of advice would you give to clients as they begin the
process of obtaining financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone
calls.: B. Have all potential lenders pull credit within a 30-day window.
9. All of the following is information necessary for your client
to gather in preparation for filling out the URLA, except:
A. Figures related to income from child support.
B. Figures related to student loans
C. Year home was built
D. Referrals of past landlords: D. Referrals of past lenders
10. All of the following statements describe working with an
appraiser during the "obtaining financing" step of purchasing a
home, except:
A. it is improper for an appraiser to consider racial or religious
background of a neighborhood's residents to determine the
value of a home.
B. Lenders hire appraisers
