Choose wisely. There is only one correct answer to each question.
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1.
If you make a written purchase offer on a house that is accepted by the seller, you can change your mind later and back out.
False. A written purchase offer on a house is a binding contract, and once the seller has accepted your offer, you can't change your mind unless you are exercising a contingency set forth in that contract.
2.
A bad debt will hit your FICO score harder if it is _______.
Recently incurred. The FICO score weighs recent history more heavily than the past, so any recent credit delinquencies will impact your score more heavily than older bad debts.
3.
Your monthly mortgage payments should not exceed _______ percent of your gross monthly income.
25 to 30 percent. Lenders' guidelines require that your mortgage payment not exceed 25 to 30 percent of your gross monthly income.
4.
_______ is when a realtor nudges you in the direction of higher-priced homes.
Up-selling. Since a realtor's commission is based on the sale price of the home, they don't have anything to lose by showing you and urging you to buy a higher-priced home that you can't really afford.
5.
If you don't hire a realtor to help buy a house, you can do without a real estate attorney as well to keep your costs down.
False. Regardless of whether you hire a realtor, having a real estate attorney go over the contract and look after the legal details can save you a lot of money.