Module #10 Buying A Home Questions
with Accurate Answers
What is the first step when you are in the market to buy a home? - answer Don’t even
think about looking at a place to buy until you understand your budget.
What is a good definition of "house poor"? - answer You can't save any money because
you need every dime just to pay your mortgage and bills.
You're deciding how much you can afford to pay each month on your mortgage loan.
What monthly payment guideline should you follow? - answer 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
Why do mortgage brokers normally have no risk in the mortgage process? - answer All
of the above
Which of the following statements is the most accurate about choosing guidelines for
buying a home? - answer 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
It is almost impossible to buy a house these days without a sizable down payment -
answer True
Normally, mortgage brokers have nothing to lose by encouraging you to get a bigger
loan than you may be able to afford - answer True
Many conservative consumer advocates said you should not pay more than 25% of
your TAKE-HOME PAY on a mortgage payment - answer True
What is a good reason to buy a house? - answer You have a good amount of money
you can use as your down payment
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? - answer The car is collateral for my loan
with Accurate Answers
What is the first step when you are in the market to buy a home? - answer Don’t even
think about looking at a place to buy until you understand your budget.
What is a good definition of "house poor"? - answer You can't save any money because
you need every dime just to pay your mortgage and bills.
You're deciding how much you can afford to pay each month on your mortgage loan.
What monthly payment guideline should you follow? - answer 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
Why do mortgage brokers normally have no risk in the mortgage process? - answer All
of the above
Which of the following statements is the most accurate about choosing guidelines for
buying a home? - answer 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
It is almost impossible to buy a house these days without a sizable down payment -
answer True
Normally, mortgage brokers have nothing to lose by encouraging you to get a bigger
loan than you may be able to afford - answer True
Many conservative consumer advocates said you should not pay more than 25% of
your TAKE-HOME PAY on a mortgage payment - answer True
What is a good reason to buy a house? - answer You have a good amount of money
you can use as your down payment
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? - answer The car is collateral for my loan
