Test your knowledge

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1.
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.
2.
The point at which ownership of a house passes from seller to buyer is known as _______.
Choose wisely. There is only one correct answer.
The closing. Until all outstanding issues are resolved at the closing, the house still belongs to the seller, not the buyer. At closing, the buyer takes possession of the house from the seller.
3.
Your monthly mortgage payments should not exceed _______ percent of your gross monthly income.
Choose wisely. There is only one correct answer.
25 to 30 percent. Lenders' guidelines require that your mortgage payment not exceed 25 to 30 percent of your gross monthly income.
4.
When you work with a Realtor, he or she will come up with a list of potential homes for you to look at.
Choose wisely. There is only one correct answer.
True. One of the most important jobs of a Realtor is to comb through home listings and come up with a list that fits your price range, needs, and lifestyle.
5.
One way to save money when buying a house on your own is to look for _______ homes.
Choose wisely. There is only one correct answer.
"For sale by owner". When a seller isn't using a realtor, the home's price will not include a realtor's commission, so it is likely to be lower than a home sold by a realtor.