FCS 340 Exam 3 | Actual Exam Questions |
100% Correct Answers | Verified
2024 Version
Traditional financial guidelines suggest that your home should cost about __________ times your annual
income - ✔✔20-30%
List advantages and disadvantages of renting - ✔✔Advantages: Easy to move, financial benefits, lifestyle
flexibility
Disadvantages: No tax benefit, limitations on remodeling, restrictions on pets
The opportunity to have another person take over rent payments and live in the rental unit is called
__________________________. - ✔✔Subletting
List advantages and disadvantages of buying a home. - ✔✔Advantages: Pride of ownership, financial
benefits, lifestyle flexibility
Disadvantages: Financial commitment, higher living expanses, limited mobility
List important factors to consider when selecting a contractor to build a home. - ✔✔Contractor
reputation
Experience
Payment schedule
Timeline of building
In order to purchase a home, most people need to save for a _______________________ before
purchasing - ✔✔downpayment
List important considerations in choosing a home to purchase - ✔✔Move-in ready
Fixer upper
School district
, How much you can afford
What should a home buyer consider when evaluating the actual house? - ✔✔Zoning laws
School systems
Future construction around you
Property values in area
What does the real estate agent do? - ✔✔Help sell or buy real estate
When buying an older house, a buyer should get a ____________________ to find out about possible
problems with the house. - ✔✔Inspector
After submitting an offer on a house, the seller may choose to provide a________________, rejecting
the submitted offer. - ✔✔counteroffer
What is a contingency clause? - ✔✔Agreement is good only if certain events happen
What is an appraisal? Why does the mortgage company conduct an appraisal? - ✔✔-Assessing
something.
-So they can know how much they should lend you.
What is earnest money? - ✔✔Portion of price of home that buyer deposits as evidence of good faith to
indicate serious purchaser.
Define points. - ✔✔Prepaid interest charged by lender
What is PMI? When is a buyer required to purchase it? - ✔✔-Property mortgage insurance
- When downpayment is less than 20%
100% Correct Answers | Verified
2024 Version
Traditional financial guidelines suggest that your home should cost about __________ times your annual
income - ✔✔20-30%
List advantages and disadvantages of renting - ✔✔Advantages: Easy to move, financial benefits, lifestyle
flexibility
Disadvantages: No tax benefit, limitations on remodeling, restrictions on pets
The opportunity to have another person take over rent payments and live in the rental unit is called
__________________________. - ✔✔Subletting
List advantages and disadvantages of buying a home. - ✔✔Advantages: Pride of ownership, financial
benefits, lifestyle flexibility
Disadvantages: Financial commitment, higher living expanses, limited mobility
List important factors to consider when selecting a contractor to build a home. - ✔✔Contractor
reputation
Experience
Payment schedule
Timeline of building
In order to purchase a home, most people need to save for a _______________________ before
purchasing - ✔✔downpayment
List important considerations in choosing a home to purchase - ✔✔Move-in ready
Fixer upper
School district
, How much you can afford
What should a home buyer consider when evaluating the actual house? - ✔✔Zoning laws
School systems
Future construction around you
Property values in area
What does the real estate agent do? - ✔✔Help sell or buy real estate
When buying an older house, a buyer should get a ____________________ to find out about possible
problems with the house. - ✔✔Inspector
After submitting an offer on a house, the seller may choose to provide a________________, rejecting
the submitted offer. - ✔✔counteroffer
What is a contingency clause? - ✔✔Agreement is good only if certain events happen
What is an appraisal? Why does the mortgage company conduct an appraisal? - ✔✔-Assessing
something.
-So they can know how much they should lend you.
What is earnest money? - ✔✔Portion of price of home that buyer deposits as evidence of good faith to
indicate serious purchaser.
Define points. - ✔✔Prepaid interest charged by lender
What is PMI? When is a buyer required to purchase it? - ✔✔-Property mortgage insurance
- When downpayment is less than 20%
