Financial Readiness and Budget
What percentage of your income should your housing costs stay below according to the 28/36 rule?
28 Percent
What type of loan is backed by the Federal Housing Administration and designed for first-time homebuyers?
FHA Loan
Buying a home for the first time is both a major life event and a major what?
Financial Achievement
What does PITI stand for when calculating your monthly mortgage payment?
Principal, Interest, Taxes, and Insurance
What document shows sellers that you are financially ready to buy a home and have lender approval?
Loan Pre Approval Letter
What government agency provides the resource “Owning a Home”?
Consumer Financial Protection Bureau
If your total debt exceeds this percentage of your income, you may not be financially ready to buy a home.
36%
If you put down less than 20% on a home, what type of insurance might you be required to pay?
PMI (Private Mortgage Insurance)
What is the term for someone purchasing a home for the first time?
first-time homebuyer
Name one effective way to improve your credit score before buying a home.
paying down or off existing debts
Closing costs typically range between what percentages of the total loan amount?
2-6 Percent
Name one question a first-time homebuyer should ask before beginning the process.
“Am I financially ready?”
What should a first-time buyer create to cover unexpected home repairs or emergencies after purchase?
Reserve Fund
Name one federal or state program that offers grants or low down payment loans to first-time buyers.
First-Time Homebuyer Program or FHA/USDA assistance?
What are the five main steps a first-time buyer should prepare for according to the presentation?
check financial readiness, explore financing options, find a house and make an offer, complete escrow, and close/move in?