1|Page
FREDDIE MAC-CREDIT SMART EXAM LATEST
WITH ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS ALREADY GRADED A+
100% GUARANTEED PASS!
The percentage of your gross monthly income that goes
toward paying for your housing expenses is called the
"housing expense ratio" and is based on the total
housing payment, which includes: - .....ANSWER ...✔✔
Principal, interest, property taxes, homeowner's
insurance, mortgage insurance, homeowner's or condo
association fees
Lenders don't include your future housing payment in
your debt-to-income ratio, only all other outstanding
debts. - .....ANSWER ...✔✔ False
The principal amount is the total amount borrowed. -
.....ANSWER ...✔✔ True
Do lenders use gross income or net profits when
calculating mortgage affordability for self-employed
borrowers? - .....ANSWER ...✔✔ Net profits
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An escrow account is a special account managed by the
borrower that holds funds for property taxes and
property insurance payments. - .....ANSWER ...✔✔
False
Having adequate cash 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. - .....ANSWER ...✔✔ True
Capital - or cash to close - refers to the funds you need
to save in order to cover the cost of down payment and
closing costs. - .....ANSWER ...✔✔ True
Acceptable sources of capital include: - .....ANSWER
...✔✔ Funds from a family member, funds from a
down payment assistance program or funds from your
savings account
Lenders consider investments to be (select all that
apply): - .....ANSWER ...✔✔ Lenders consider
investments to be IRAs, bonds, CDs, stocks and 401(k)
plans.
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To determine if you have adequate savings to obtain a
mortgage and sustain homeownership, lenders will
average the last six months of your checking and savings
account balances. - .....ANSWER ...✔✔ False
Lenders consider four primary factors when determining
whether to approve a loan - the 4 C's of lending. What
are they? - .....ANSWER ...✔✔ Credit, Capacity,
Capital and Collateral
Derogatory information on your credit report may
include: collections, judgements, bankruptcies and/or
late payments. - .....ANSWER ...✔✔ True
Lenders generally don't have any guidelines or
restrictions when it comes to the home you want to
purchase or its condition, provided you have good
credit. - .....ANSWER ...✔✔ False
The home inspection is ordered through the lender and
determines the market value of the home. - .....ANSWER
...✔✔ False
FREDDIE MAC-CREDIT SMART EXAM LATEST
WITH ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS ALREADY GRADED A+
100% GUARANTEED PASS!
The percentage of your gross monthly income that goes
toward paying for your housing expenses is called the
"housing expense ratio" and is based on the total
housing payment, which includes: - .....ANSWER ...✔✔
Principal, interest, property taxes, homeowner's
insurance, mortgage insurance, homeowner's or condo
association fees
Lenders don't include your future housing payment in
your debt-to-income ratio, only all other outstanding
debts. - .....ANSWER ...✔✔ False
The principal amount is the total amount borrowed. -
.....ANSWER ...✔✔ True
Do lenders use gross income or net profits when
calculating mortgage affordability for self-employed
borrowers? - .....ANSWER ...✔✔ Net profits
,2|Page
An escrow account is a special account managed by the
borrower that holds funds for property taxes and
property insurance payments. - .....ANSWER ...✔✔
False
Having adequate cash 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. - .....ANSWER ...✔✔ True
Capital - or cash to close - refers to the funds you need
to save in order to cover the cost of down payment and
closing costs. - .....ANSWER ...✔✔ True
Acceptable sources of capital include: - .....ANSWER
...✔✔ Funds from a family member, funds from a
down payment assistance program or funds from your
savings account
Lenders consider investments to be (select all that
apply): - .....ANSWER ...✔✔ Lenders consider
investments to be IRAs, bonds, CDs, stocks and 401(k)
plans.
, 3|Page
To determine if you have adequate savings to obtain a
mortgage and sustain homeownership, lenders will
average the last six months of your checking and savings
account balances. - .....ANSWER ...✔✔ False
Lenders consider four primary factors when determining
whether to approve a loan - the 4 C's of lending. What
are they? - .....ANSWER ...✔✔ Credit, Capacity,
Capital and Collateral
Derogatory information on your credit report may
include: collections, judgements, bankruptcies and/or
late payments. - .....ANSWER ...✔✔ True
Lenders generally don't have any guidelines or
restrictions when it comes to the home you want to
purchase or its condition, provided you have good
credit. - .....ANSWER ...✔✔ False
The home inspection is ordered through the lender and
determines the market value of the home. - .....ANSWER
...✔✔ False
