Freddie Mac - Credit Smart Exam Questions And
Answers
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Terms in this set (84)
The percentage of your Principal, interest, property taxes, homeowner's
gross monthly income that insurance, mortgage insurance, homeowner's or
goes toward paying for condo association fees
your housing expenses is
called the "housing
expense ratio" and is
based on the total housing
payment, which includes:
Lenders don't include your False
future housing payment in
your debt-to-income ratio,
only all other outstanding
debts.
The principal amount is True
the total amount
borrowed.
Do lenders use gross Net profits
income or net profits
when calculating
mortgage affordability for
self-employed borrowers?
,An escrow account is a False
special account managed
by the borrower that holds
funds for property taxes
and property insurance
payments.
Having adequate cash True
reserves demonstrates to
your lender that you have
responsibly managed your
money and have savings
and other assets to fall
back on in case of
emergency.
Capital - or cash to close - True
refers to the funds you
need to save in order to
cover the cost of down
payment and closing
costs.
Funds from a family member, funds from a down
Acceptable sources of
payment assistance program or funds from your
capital include:
savings account
Lenders consider Lenders consider investments to be IRAs, bonds, CDs,
investments to be (select stocks and 401(k) plans.
all that apply):
To determine if you have False
adequate savings to
obtain a mortgage and
sustain homeownership,
lenders will average the
last six months of your
checking and savings
account balances.
, Lenders consider four Credit, Capacity, Capital and Collateral
primary factors when
determining whether to
approve a loan - the 4 C's
of lending. What are they?
Derogatory information True
on your credit report may
include: collections,
judgements, bankruptcies
and/or late payments.
Lenders generally don't False
have any guidelines or
restrictions when it comes
to the home you want to
purchase or its condition,
provided you have good
credit.
The home inspection is False
ordered through the
lender and determines the
market value of the home.
Manufactured homes are False
the same as mobile homes
and don't need to meet
federal construction and
safety standards.
If you make extra True
payments on your loan,
that can help pay down
the principal faster and
thus greatly reduce the
interest due on the loan.
Answers
Save
Terms in this set (84)
The percentage of your Principal, interest, property taxes, homeowner's
gross monthly income that insurance, mortgage insurance, homeowner's or
goes toward paying for condo association fees
your housing expenses is
called the "housing
expense ratio" and is
based on the total housing
payment, which includes:
Lenders don't include your False
future housing payment in
your debt-to-income ratio,
only all other outstanding
debts.
The principal amount is True
the total amount
borrowed.
Do lenders use gross Net profits
income or net profits
when calculating
mortgage affordability for
self-employed borrowers?
,An escrow account is a False
special account managed
by the borrower that holds
funds for property taxes
and property insurance
payments.
Having adequate cash True
reserves demonstrates to
your lender that you have
responsibly managed your
money and have savings
and other assets to fall
back on in case of
emergency.
Capital - or cash to close - True
refers to the funds you
need to save in order to
cover the cost of down
payment and closing
costs.
Funds from a family member, funds from a down
Acceptable sources of
payment assistance program or funds from your
capital include:
savings account
Lenders consider Lenders consider investments to be IRAs, bonds, CDs,
investments to be (select stocks and 401(k) plans.
all that apply):
To determine if you have False
adequate savings to
obtain a mortgage and
sustain homeownership,
lenders will average the
last six months of your
checking and savings
account balances.
, Lenders consider four Credit, Capacity, Capital and Collateral
primary factors when
determining whether to
approve a loan - the 4 C's
of lending. What are they?
Derogatory information True
on your credit report may
include: collections,
judgements, bankruptcies
and/or late payments.
Lenders generally don't False
have any guidelines or
restrictions when it comes
to the home you want to
purchase or its condition,
provided you have good
credit.
The home inspection is False
ordered through the
lender and determines the
market value of the home.
Manufactured homes are False
the same as mobile homes
and don't need to meet
federal construction and
safety standards.
If you make extra True
payments on your loan,
that can help pay down
the principal faster and
thus greatly reduce the
interest due on the loan.
