Quiz 1 - Homeownership

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 1. What is the largest factor of a FICO   credit score?

a.   Utilization ratio
b. Payment history
c. New accounts
d. None of the above

2. The FACT Act allows consumers to obtain a free copy of their credit report   annually from all of the major credit reporting agencies.

a.   True
b. False

3. There are no disadvantages to becoming a homeowner.

a.   True
b. False

4. Earnest Money is:

a.   About 2% of the purchase price.

b. Deposited into an escrow   account.
c. A cash deposit that proves   that you are serious to the seller.
d. All of the above.

5. How much should you have in your reserve fund after closing?

a.   6 months' worth of your essential expenses

b. 2 months' worth of your   essential expenses
c. 2 months' worth of   your monthly housing payments
d. 6 months' worth of your   monthly housing payments

6. Improving your credit score can be achieved by:

a.   Making payments on time every month
b. Paying down or paying off   debt
c. Opening several new accounts

d. Both a and b.

Correct answers: 1. b, 2. a, 3.b, 4. d, 5. c, 6. d