HUD Exam- Homeownership
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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.
, HUD Exam- Homeownership
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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
C. Homebuyers can cancel the offer contract if the contract includes a contin-
gency clause.
D. Homebuyers rarely are allowed to see the appraisal information and for that
reason are encouraged to get a home inspection.: D. Homebuyers rarely are allowed to see
the appraisal information and for that reason are encouraged to get a home inspection.
-In some cases, the lender is required to share the appraisal information with clients. It is helpful for clients to review
the appraisal report with you in order to identify any improper factors used to determine the home's value. Whether or
not clients view the appraisal, they should have a home inspection done, especially since the two processes are different
from one another.
11. A client is shopping for a loan and submits a loan application to a lender. The
client asks for information about possible settlement costs, but the lender says
that he needs to see the purchase contract in order to move forward with the
Study online at https://quizlet.com/_i3o2r0
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.
, HUD Exam- Homeownership
Study online at https://quizlet.com/_i3o2r0
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
C. Homebuyers can cancel the offer contract if the contract includes a contin-
gency clause.
D. Homebuyers rarely are allowed to see the appraisal information and for that
reason are encouraged to get a home inspection.: D. Homebuyers rarely are allowed to see
the appraisal information and for that reason are encouraged to get a home inspection.
-In some cases, the lender is required to share the appraisal information with clients. It is helpful for clients to review
the appraisal report with you in order to identify any improper factors used to determine the home's value. Whether or
not clients view the appraisal, they should have a home inspection done, especially since the two processes are different
from one another.
11. A client is shopping for a loan and submits a loan application to a lender. The
client asks for information about possible settlement costs, but the lender says
that he needs to see the purchase contract in order to move forward with the
