HUD Exam- Homeownership Question & Answers 2023/2024
Which factor is best for housing counselors to use when determining how much a client can afford to spend on purchasing a home?
A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above - ANSWER-D...
HUD Exam- Homeownership Question & Answers 2023/2024
Which factor is best for housing counselors to use when determining how much a client can afford to spend on purchasing a home? A. Debt to-income ratios
B. Annual gross income
C. Savings
D. Options A, B, C
E. None of the above - ANSWER-D. Options A, B, and C
A person or company that makes loans for real estate purchases. "Loan officer" is a related term that refers to a representative of a lending or mortgage company who is responsible for soliciting homebuyers and for qualifying and processing loans. - ANSWER-Lender
A government official responsible for determining the value of a property for taxation purpose. - ANSWER-Assessor
A professional who conducts an inspection of the home's structure and mechanical systems to determine quality, soundness, and safety. S/he makes the potential homebuyer aware of any repairs that
may be necessary. - ANSWER-Home Inspector
A lender's representative who analyzes a loan application, the potential borrower's credit history, and a judgement of the property value to determine the amount of risk involved in making the loan. - ANSWER-Underwriter
A professional who gives an estimate of a property's fair market value based on the sales of comparable homes in the area and on the property's features. This estimate is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property. - ANSWER-Appraiser
Which statement most accurately describes a member of the homebuying team? A. a real estate agent or broker is typically an attorney or works for an escrow company. S/he oversees the final transaction in property purchase, at which time the title is transferred from the seller to the buyer. B. The lender requires an assessment of the home by a home inspector before loan approval C. An insurance agent is also know as a settlement agent. D. a home inspector is generally paid by the buyer. - ANSWER-D. A home inspector is generally paid by the buyer
Which piece of advice would you give to clients as they begin the process of obtaining financing?
A. Never speak with lenders before settling on a home.
B. Have all potential lenders pull credit within a 30-day window.
C. Mortgages with adjustable rates are always best.
D. Choose whichever lender is most prompt in returning your phone calls. - ANSWER-B. Have all potential lenders pull credit within a 30-day window.
All of the following is information necessary for your client to gather in preparation for filling out the URLA, except:
A. Figures related to income from child support.
B. Figures related to student loans
C. Year home was built
D. Referrals of past landlords - ANSWER-D. Referrals of past lenders
All of the following statements describe working with an appraiser during the "obtaining financing" step of purchasing a home, except:
A. it is improper for an appraiser to consider racial or religious background of a neighborhood's residents
to determine the value of a home.
B. Lenders hire appraisers
C. Homebuyers can cancel the offer contract if the contract includes a contingency clause.
D. Homebuyers rarely are allowed to see the appraisal information and for that reason are encouraged to get a home inspection. - ANSWER-D. Homebuyers rarely are allowed to see the appraisal information and for that reason are encouraged to get a home inspection.
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