Monday, March 24, 2014

Take our real estate and mortgage quiz!


Are you a savvy homebuyer?  Do you know the in's and out's of selling your home?  Are you so knowledgeable about the world of real estate and mortgages that you think you could pass the state exam today?  

Take our real estate and mortgage quiz and let's see what you've got!

1. How long is the typical escrow period?

a) 90 days
b) 30 days
c) no set period
d) 15 days

2. When someone is making a “contingent offer,” they typically:

a) Need to sell their home before they can close on a purchase
b) Need to refinance first
c) Want a 20% price reduction on your home
d) None of the above

3. Which matters more: being prequalified for a mortgage or preapproved?

a) Prequalified
b) Preapproved
c) They are the same thing

4. When buying a home that’s “For sale by owner,” can you use a realtor?

a) Yes
b) No
c) Only if you use the same realtor
d) It’s illegal

5. How much are typical closing costs?

a) 8-10% of purchase price
b) 20% down
c) $1,000
d) 3-6% of purchase price

6. The appraised value of a property is based most prominently on:

a) Price per square foot of all properties in your city
b) The appraiser’s judgment
c) Prices of comparable properties that have sold in the area
d) Market fluctuations

7. As a new homeowner, what costs can you deduct from income when you file your federal taxes?

a) Mortgage interest
b) Property taxes
c) Points paid at settlement
d) All of the above

8. Which of the following are covered by real estate’s Environmental Hazards Law?

a) Petrochemicals
b) Lead Based Paint
c) Silica
d) Diammonium Phosphate Fertilizer

9. Which of the following is an example of joint ownership?

a) Vacation home
b) RV or mobile home
c) Condo
d) Basketball arena

10. If you rent a home and the water heater breaks, who is responsible for fixing it?

a) The tenant
b) The landlord
c) The previous seller
d) The home builder

11. When your property tax bill comes, there is no way to appeal or adjust it.

True
False


12. A short sale is when you buy a previously foreclosed property.

True
False

13. REO stands for what?

a) The band REO Speedwagon
b) Really Excellent Offer
c) Residential Escrow Officer
d) Real Estate Owned

14. What percentage of U.S. homes sit vacant?

a) 35%
b) 13%
c)  2%
d)  19%

15. What’s the approximate percentage or renters versus homeowners in the U.S.?

a) 50% rent/50% own
b)26% rent/74% own
c) 40% rent/60% own
d) 80% rent/20% own

16. Traditionally, a down payment is how much? 

a) 20%
b) 10%
c) 80%
d) 100%

17. If there was a murder, epic flood, or a satanic cult operating in the house, does the seller need to disclose that?

Yes
No

18. What are the two most important factors when qualifying for a mortgage loan?

a) Down payment and job title
b) Credit score and income
c) Bank statements and size of retirement nest egg
d) The lenders look at everyone as equals

19. When someone says the house is a “2/1” what are they referring to?

a) 2 units on 1 property
b) 2,100 square feet
c) 2 bathrooms and 1 bedroom
d) 2 bedrooms and 1 bathroom

20. Buyers pay how much for their real estate agent?

a) 3%
b) Split 50/50 with the seller’s agent
c) $0
d) 6%

21. When you’re selling your home, who decides what price you list your home for?

a) The listing agent
b) The homeowner
c) The listing agent’s broker
d) It’s a team decisions between you, the buyers agent, and the listing agent.

22. Are all appliances automatically included in the sale of a home?

Yes
No

23. Is the garage counted in the home’s appraised square footage?

a) Yes
b) No
c) Only If it’s 3 car or bigger.
d) Counts as ½ the normal square footage

24. Can agents tell the buyer about the ethnic makeup and crime rates of a neighborhood? 

Yes
No

25. You’re writing an offer to buy a house and the selling agent tells you they have other bids.  Do you have a right to demand proof?

Yes
No

26. If the escrow period expires, can the buyer and seller still go through with the sale?

Yes
No

27. Are you obligated to get your mortgage with the same bank or loan officer you were preapproved with?

Yes
No

28. If you go through a short sale or foreclosure, do you always need to wait 7 years before getting another home loan?

Yes
No

29. What does the mortgage term APR stand for?

a) Aggregate Property Rating
b) Adjusted Prime Rate
c) Annual Property Ranking
d) Annual Percentage Rate

30. You have to be a U.S. citizen to get a government-backed mortgage.

True
False

31. How many signatures does it usually take to close a real estate transaction – buyer and seller combined?

a) 350
b) 240
c) 49
d) 108

32. Mortgage interest rates are most tied to what financial instrument?

a) Treasury index and futures
b) Price of oil
c) The bond market
d) The stock market

33. Is it legal for realtors or loan officers to get kickbacks from inspectors, appraisers, vendors, etc.?

a) Yes
b) No
c) Sometimes
d) Only if they divulge to the buyer

34. What is an easement right?

a)    A right of way granted for someone to access your land.
b)    The rights of a city to annex your land.
c)    The right to inspect the attic or foundation of a home.
d)    A right for someone to inspect your land.

35. The real estate “TDS” stands for:

a) Total Disaster Statement
b) Transferred Documents Standard
c) The appraisal
d) Transfer Disclosure Statement

Answers:

How many answers do you get right? 

0-10 Don't quit your day job!
11-20 Rookie!
21-25 Not bad at all!
26-29  Great knowledge.
30+  You're a genius!
All of them.  Stop Googling!

1. b) 30 days 
2. a) Need to sell their home before they can close on a purchase
3. b) Preapproved
4. a) Yes
5. d) 3-6% of purchase price
6. c) Prices of comparable properties that have sold in the area
7. d) All of the above
8. b) Lead Based Paint
9. c) Condo
10. b) The landlord
11. False
12. False
13. d) Real Estate Owned
14. b) 13%
15. c) 40% rent/60% own
16. a) 20%
17. Yes
18. b) Credit score and income
19. c) 2 bathrooms and 1 bedroom
20. c) $0
21. b) The homeowner
22. No
23. b) No
24. No (Disclosing ethnic, crime, or even school stats is illegal to prevent the practice of redlining.)
25. No (Agents do not have to disclose or prove other offers.)
26. Yes
27. No
28. No (In most cases, you can buy again in 2-4 years if all other factors are in order.)
29. d) Annual Percentage Rate (The APR factors in the interest rate and all costs over the life of the loan.)
30. False (To buy you need to be a legal resident, but not a citizen.)
31. b) 240 (It's estimated there are 108 buyer signatures and 132 seller signatures in a real estate sale, but of course this will vary.)
32. c) The bond market
33. b) No (According to RESPA, the Real Estate Settlement Procedures Act.)

34. a)  A right of way granted for someone to access to your land.

35. d) Transfer Disclosure Statement 
 


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