Affordability & Budgeting
What is the rule of thumb for how much of your monthly income should go toward your housing costs?
What is 30%?
This is the minimum credit score many lenders require for an FHA loan.
What is 580?
What is the lowest down payment typically required for an FHA loan?
What is 3.5%?
This professional helps you find homes and negotiate a purchase.
What is a buyer's agent?
This is the term for the total amount of money you spend each month.
What is a budget?
A mortgage interest rate that changes over time is called this.
What is an adjustable-rate mortgage?
Name one common way to save for a down payment.
What is automating savings or reducing discretionary spending?
What’s one red flag you might see during an open house?
What is water damage, cracks, or bad smells?
This term refers to the upfront money you give when your offer is accepted.
What is earnest money?
This online tool helps you estimate how much house you can afford.
What is a mortgage calculator?
Name one way to quickly boost your credit score before applying for a loan.
What is paying down credit cards or becoming an authorized user?
True or False: You must have 20% down to buy a home.
What is False?
This is a document that compares similar homes in the area to determine value.
What is a comparative market analysis (CMA)?
True or False: You must pay your buyer’s agent out of pocket
What is False? (Sellers typically cover this.)
True or False: If you qualify for a $400,000 loan, you should spend the full amount.
What is False?
This term refers to the official loan estimate provided by lenders that outlines your costs.
What is a Loan Estimate (LE)?
This government-backed loan requires no down payment for qualified veterans.
What is a VA loan?
Who hosts an open house?
What is the Listing agent?
This strategy can make your offer more attractive in a competitive market.
What is offering above asking or waiving contingencies?
This term refers to the total monthly debts compared to your income.
What is debt-to-income ratio (DTI)?
This is the process where the bank officially checks your documents to give you a loan approval.
What is underwriting?
This is a grant or program that can assist with your down payment or closing costs.
What is a down payment assistance program (DPA)?
This is what you do after you find a home you love and want to make a move.
What is make an offer?
What happens after your offer is accepted but before closing?
What is escrow (or due diligence period)?