HUD Study Guide- Financial Management 2024

HUD Study Guide- Financial Management 2024 Which document is most important when working with a client to develop an initial budget as part of a Client Action Plan? - List of Assets - Current Lease - Retirement Plan statement - Pay stubs - CORRECT ANSWER-Pay stubs All the following are reasons why it is important for a client to track income and expenses before finalizing a budget, except: - It helps show clients that they actually spend less on some expenses than they think - It helps identify spending habits - It helps show clients that their spending and expenses are out of control - It helps define realistic and attainable goals and timelines - CORRECT ANSWER-It helps show clients that their spending and expenses are out of control Ray's commute on the bus takes over an hour, so he wants to buy a car as soon as possible; but he has poor credit and cannot obtain a loan right now. He thinks he can find a reliable car for about $2,000 and has about 20% of the total in the bank from his tax refund. if Ray's goal is to buy a car within 8 months, what is the minimum amount he needs to save each month? - $150 - $175 - $200 - $225 - CORRECT ANSWER-$200 Rebecca helps determine that with his current savings of $400 plus some budget adjustments Ray will now be able to set aside $320 each month towards purchasing the $2,000 car. With these new budget adjustments, how many months will Ray need to save $2,000 to buy the car? - At least 4 months - At lease 5 months - At least 6 months - At lease 7 months - CORRECT ANSWER-At least 5 months A client would like to purchase a home within one year. The client is motivated to increase household income as a way to save for a down payment and qualify for a loan. Which is the best solution for the client to reach this goal? - Sell major assets - Borrow from retirement fund - Find a second job - Find a temporary job through a staffing service - CORRECT ANSWER-Find a second job Which section of a credit report will contain court information such as a bankruptcy? - Public Records - Personal Information - Consumer Rights - Account/Tradeline Information - CORRECT ANSWER-Public Records Molly is a recent college graduate trying to apply for her first credit card. What section of a credit report would contribute to the calculation of a credit score issue involving this situation?