Test your knowledge

Choose wisely. There is only one correct answer to each question.

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1.
All offers to purchase a home are accompanied by a(n) _______ deposit.
Choose wisely. There is only one correct answer.
Earnest money. When you make an offer on a house, you must include a good faith deposit known as earnest money.
2.
How much of your gross monthly income should your total debt load take up at the most?
Choose wisely. There is only one correct answer.
40 percent. All of your loans, including mortgage, car, student, credit card, etc., shouldn't add up to more than 40 percent of your gross monthly income.
3.
_______ is when a realtor nudges you in the direction of higher-priced homes.
Choose wisely. There is only one correct answer.
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.
4.
A bad debt will hit your FICO score harder if it is _______.
Choose wisely. There is only one correct answer.
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.
5.
When selecting a real estate agent, it is a good idea to _______.
Choose wisely. There is only one correct answer.
Interview several agents before signing a contract. You want to know what types of homes the agent usually sells as well as what the commission rate is and what services are included.