FREDDIE MAC - CREDIT SMART EXAM QUESTIONS 2026|
GUARANTEED ACCURATE ANSWERS
Terms in this set (84)
The percentage of your gross Principal, interest, property taxes, homeowner's insurance,
monthly income that goes mortgage insurance, homeowner's or condo association fees
toward paying for 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 the total True
amount borrowed.
Do lenders use gross income or Net profits
net profits when calculating
mortgage affordability for self-
employed borrowers?
,An escrow account is a special False
account managed by the
borrower that holds funds for
property taxes and
property
insurance payments.
Having adequate cash reserves True
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.
Acceptable sources of capital Funds from a family member, funds from a down payment
include: assistance program or funds from your savings account
Lenders consider investments to Lenders consider investments to be IRAs, bonds, CDs, stocks and
be (select all that apply): 401(k) plans.
, 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 primary Credit, Capacity, Capital and Collateral
factors when determining
whether to approve a loan - the
4 C's of lending. What are they?
Derogatory information on your True
credit report may include:
collections, judgements,
bankruptcies and/or late
payments.
Lenders generally don't have False
any guidelines or restrictions
when it comes to the home you
want to purchase or its
condition, provided you have
good credit.
GUARANTEED ACCURATE ANSWERS
Terms in this set (84)
The percentage of your gross Principal, interest, property taxes, homeowner's insurance,
monthly income that goes mortgage insurance, homeowner's or condo association fees
toward paying for 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 the total True
amount borrowed.
Do lenders use gross income or Net profits
net profits when calculating
mortgage affordability for self-
employed borrowers?
,An escrow account is a special False
account managed by the
borrower that holds funds for
property taxes and
property
insurance payments.
Having adequate cash reserves True
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.
Acceptable sources of capital Funds from a family member, funds from a down payment
include: assistance program or funds from your savings account
Lenders consider investments to Lenders consider investments to be IRAs, bonds, CDs, stocks and
be (select all that apply): 401(k) plans.
, 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 primary Credit, Capacity, Capital and Collateral
factors when determining
whether to approve a loan - the
4 C's of lending. What are they?
Derogatory information on your True
credit report may include:
collections, judgements,
bankruptcies and/or late
payments.
Lenders generally don't have False
any guidelines or restrictions
when it comes to the home you
want to purchase or its
condition, provided you have
good credit.
