Are You Ready to Buy/ Managing Your Money

H

100

What is one of the benefits of renting? 

Defer most repair (landlord takes care of most repairs), Avoids property taxes, Flexibility. 

200

Name the 4Cs of Credit

Capital, Capacity, Collateral, and Credit

300

What does the acronym PITI stand for?

Principal, Insurance, Taxes, Interest

400

Who is the professional that gets hired to estimate the value of the property that you are showing interest in. 

Appraiser 

500

List the first 3 Steps of the homebuying Process (in order)

Prepare for Homeownership, Determine How much You can Spend, Get Pre-Approved.

O

100

What is "Housing Ratio" also known as?

What is Debt-to-income ratio also known as?

Front-End Ratio/ Back-End Ratio

200

Name the 3 Credit bureaus

Experian, TransUnion, Equifax

300

How many years do you have to show a history of most income types to use for a mortgage loan/ determine affordability? 

2 Years

400

What does the S in the SMART acronym stand for? 

Specific

500

What is gross income?

Income before taxes

U

100

What does LTV stand for?

Loan-To-Value

200

Which one of the 4Cs of credit refers to the ability to repay the mortgage loan. 

Capacity

300

Which step of the homebuying process is where you shop for the home with a realtor? 

Step 6: Shop for a Home

400

What term is used for (the amount that the lender charges for lending money. 

Interest

500

What is net income?

Income after taxes

S

100

An example of installment credit. 

Bank loans, auto loans

200

What are the 4 main types of expenses?

Regular- Fixed, Regular- Variable, Irregular-Expected, Irregular-Unexpected

300

What loan requires 3.5 percent down? 

FHA

400

The tax credit that is available to low income individuals between 25 and 65 years old. 

Earned Income Tax Credit (EITC) 

500

What is the front-end ratio for a family who is grossing $4000/month?

$1300

E

100

The savings account you "join" to save money for a special reason like holidays or birthdays.

CLUB 

200

35 Percent of how your credit score is made up.

Payment History

300

In "making adjustments" to your income, what are some things we can do?

Increase Income, Spend Less, do both

400

What does HUD stand for? 

The Department of Housing and Urban Development

500

Which savings account earns a higher interest rate than a regular savings account (deposit has to be $500-$2500)

Money Market Account