Quiz 2 - Buying a Home

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1. It is unnecessary to have a home   inspection if you are buying a new home or condominium.

a.  True
b. False

2. Which of the following is typically included as part of a standard homeowners insurance policy?

a.  Liability protection if someone gets hurt on your property
b. Damage due to a flood
c. Personal article floater

3. According to the Fair Housing Act, a lender cannot use your race, color, national origin, religion, sex, familial status, or handicap when making a lending decision.

a. True
b. False

4. Jennifer, a soon-to-be mother, applies for a mortgage while out on maternity leave. She has letters from her employer and doctor saying that she will return to work six weeks from her due date. A lender can deny Jennifer a mortgage based on the fact that she is out on maternity leave.

a.  True
b. False

5. If you are denied a mortgage based on race, color, national origin, religion, sex, familial status, or handicap, you should:

a. Ignore the discrimination because you don’t have any protections.
b. Call your local HUD office
c. Write to your local HUD   office
d. Either b or c

6. A Pre-Approval letter is good for 30-60 days.

a. True
b. False

7. A townhome differs from a condominium in that:

a.  You own the land the townhome sits on.
b. It starts on the ground   floor and can be multiple stories
c. It can have an attached   garage.
d. All of the above.

8. You should always compare your Loan Estimate to the Closing Disclosure.

a.  True
b. False

9. When choosing a real estate agent, you should rely solely on reviews that   you find online.

a.  True
b. False

10. PITI stands for

a.  Principal, Interest, Taxes, Insurance, Allowance
b. Point, Interest, Time,   Insurance, Association
c. Principal, Interest,   Taxes, Insurance
d. None of the above

Correct answers: 1. b, 2. a, 3. a, 4.b, 5.d, 6.a, 7.d, 8.a, 9.b, 10.c