Buying a Home
Is buying a home always the better option?
No
What is a budget?
an estimate of income and expenditure for a set period of time.
What are the 2 options of buying a car?
New and used cars
What is a loan?
a thing that is borrowed, especially a sum of money that is expected to be paid back with interest.
What is credit?
the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
What is the ideal percentage for a down payment?
20%
Which is an example of a long term goal?
1. An annual vacation.
2. saving for retirement.
3. buying a used car.
4. completing college within the next six months.
Saving for retirement.
What is the best way to finance your car?
Cash
When should you start paying back student loans?
6 months after graduation
Why is it important to have good credit?
Have the best interest rates, and you will pay lower fiance charges on credit card balances and loans. The less money you pay in interest, the faster you will pay off the debt and the more money you have for other expenses.
How do you find what your budget is for buying a home?
Your salary times 3.
What is commonly considered a flexible expense?
1. rent
2. a mortgage
3. home insurance
4. entertainment
entertainment
What 3 companies offer vehicle loans?
Banks, credit unions, and insurance companies
What are 3 different types of loans?
Personal, auto, mortgage, student
What is considered to be a good credit score?
670-739
This does not consider the value of the home but rather performs checks on electrical system, plumbing, HVAC. The results can be a deal breaker.
Home Inspection
What categories should be on your budget. There are 8.
Clothing
Entertainment
Utilities
Transportation
Savings
Food
Insurance
Housing
What do you need on your car loan documentation checklist? Name 4.
Proof of identity.
Proof of income.
Credit/banking history.
Proof of residence.
What are 5 questions you should ask while applying for a loan?
How much should I borrow?
How long will it take to get the money?
What do I need to take the loan out for?
How do I know what my current credit score is?
What is the interest rate on top of the loan?
How does the loan repayment work?
What is the term of the loan?
Are there any fees?
List 4 factors that affect your credit score
Payment histories, amounts owed, credit history length, credit mix, and new credit.
What are the steps to buying a home? (12 steps)
1. Check credit score
2. Save for down payment
3. Determine how much you can afford
4. Find lender
5. Get preapproved
6. Find real estate for a loan
7. Determine your priorities
8. Looking for a house
9. Make offer
10.Home inspection
11. Make sure home is appraised
12. Close on your new home
What is the final phase of the budgeting process is to:
1. set personal and financial goals
2. compare you budget to what you have actually spent
3. review financial progress
4. monitor current spending patterns
review financial progress
The dealers invoice is approximately what percent of the sticker price?
Are student loans covered if you declare bankruptcy?
Student loans can not be included in this particular legal process. You will always owe them.
What 3 things should you watch out for when having a credit card?
Double cycle billing, high limit cards, and late payment fees.