FREDDIE MAC-CREDIT SMART EXAM LATEST 2024-2025
WITH ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS ALREADY GRADED A+ 100% GUARANTEED PASS!
The percentage of your gross monthly income that goes toward paying for your
housing expenses is called the "housing expense ratio" and is based on the
total housing payment, which includes: - ANSWER-Principal, interest, property
taxes, homeowner's insurance, mortgage insurance, homeowner's or condo
association fees
Lenders don't include your future housing payment in your debt-to-income
ratio, only all other outstanding debts. - ANSWER-False
The principal amount is the total amount borrowed. - ANSWER-True
Do lenders use gross income or net profits when calculating mortgage
affordability for self-employed borrowers? - ANSWER-Net profits
An escrow account is a special account managed by the borrower that holds
funds for property taxes and property insurance payments. - ANSWER-False
Having adequate cash reserves demonstrates to your lender that you have
responsibly managed your money and have savings and other assets to fall
back on in case of emergency. - ANSWER-True
, Capital - or cash to close - refers to the funds you need to save in order to cover
the cost of down payment and closing costs. - ANSWER-True
Acceptable sources of capital include: - ANSWER-Funds from a family member,
funds from a down payment assistance program or funds from your savings
account
Lenders consider investments to be (select all that apply): - ANSWER-Lenders
consider investments to be IRAs, bonds, CDs, stocks and 401(k) plans.
To determine if you have adequate savings to obtain a mortgage and sustain
homeownership, lenders will average the last six months of your checking and
savings account balances. - ANSWER-False
Lenders consider four primary factors when determining whether to approve a
loan - the 4 C's of lending. What are they? - ANSWER-Credit, Capacity, Capital
and Collateral
Derogatory information on your credit report may include: collections,
judgements, bankruptcies and/or late payments. - ANSWER-True
Lenders generally don't have any guidelines or restrictions when it comes to
the home you want to purchase or its condition, provided you have good
credit. - ANSWER-False
The home inspection is ordered through the lender and determines the market
value of the home. - ANSWER-False
Manufactured homes are the same as mobile homes and don't need to meet
federal construction and safety standards. - ANSWER-False
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