HUD Exam- Homeownership/ Questions with
Certified Answers.
Which factor is best for housing counselors to use when determining how much a
client can afford to spend on purchasing a home?
A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above - Answer: D. Options A, B, and C
Page 1 of 18
,A person or company that makes loans for real estate purchases. "Loan officer" is
a related term that refers to a representative of a lending or mortgage company
who is responsible for soliciting homebuyers and for qualifying and processing
loans. - Answer: Lender
A government official responsible for determining the value of a property for
taxation purpose. - Answer: Assessor
A professional who conducts an inspection of the home's structure and
mechanical systems to determine quality, soundness, and safety. S/he makes the
potential homebuyer aware of any repairs that may be necessary. - Answer: Home
Inspector
A lender's representative who analyzes a loan application, the potential
borrower's credit history, and a judgement of the property value to determine the
amount of risk involved in making the loan. - Answer: Underwriter
A professional who gives an estimate of a property's fair market value based on
the sales of comparable homes in the area and on the property's features. This
estimate is generally required by a lender before loan approval to ensure that the
mortgage loan amount is not more than the value of the property. - Answer:
Appraiser
Page 2 of 18
, Which statement most accurately describes a member of the homebuying team?
A. a real estate agent or broker is typically an attorney or works for an escrow
company. S/he oversees the final transaction in property purchase, at which time
the title is transferred from the seller to the buyer.
B. The lender requires an assessment of the home by a home inspector before
loan approval
C. An insurance agent is also know as a settlement agent.
D. a home inspector is generally paid by the buyer. - Answer: D. A home inspector
is generally paid by the buyer
Which piece of advice would you give to clients as they begin the process of
obtaining financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone calls. -
Answer: B. Have all potential lenders pull credit within a 30-day window.
All of the following is information necessary for your client to gather in
preparation for filling out the URLA, except:
Page 3 of 18
Certified Answers.
Which factor is best for housing counselors to use when determining how much a
client can afford to spend on purchasing a home?
A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above - Answer: D. Options A, B, and C
Page 1 of 18
,A person or company that makes loans for real estate purchases. "Loan officer" is
a related term that refers to a representative of a lending or mortgage company
who is responsible for soliciting homebuyers and for qualifying and processing
loans. - Answer: Lender
A government official responsible for determining the value of a property for
taxation purpose. - Answer: Assessor
A professional who conducts an inspection of the home's structure and
mechanical systems to determine quality, soundness, and safety. S/he makes the
potential homebuyer aware of any repairs that may be necessary. - Answer: Home
Inspector
A lender's representative who analyzes a loan application, the potential
borrower's credit history, and a judgement of the property value to determine the
amount of risk involved in making the loan. - Answer: Underwriter
A professional who gives an estimate of a property's fair market value based on
the sales of comparable homes in the area and on the property's features. This
estimate is generally required by a lender before loan approval to ensure that the
mortgage loan amount is not more than the value of the property. - Answer:
Appraiser
Page 2 of 18
, Which statement most accurately describes a member of the homebuying team?
A. a real estate agent or broker is typically an attorney or works for an escrow
company. S/he oversees the final transaction in property purchase, at which time
the title is transferred from the seller to the buyer.
B. The lender requires an assessment of the home by a home inspector before
loan approval
C. An insurance agent is also know as a settlement agent.
D. a home inspector is generally paid by the buyer. - Answer: D. A home inspector
is generally paid by the buyer
Which piece of advice would you give to clients as they begin the process of
obtaining financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone calls. -
Answer: B. Have all potential lenders pull credit within a 30-day window.
All of the following is information necessary for your client to gather in
preparation for filling out the URLA, except:
Page 3 of 18
