Free House Buying Question and Answers

Question 1

Describe amortization.

Accepted Answer

the process of paying off the mortgage gradually

Answer

the process of drowning in debt from a mortgage

Answer

the process of taking out a second mortgage

Question 2

Which of the following categories of real estate agent works for a company that exclusively represents purchasers and doesn't accept any listings?

Accepted Answer

exclusive buyer agent

Answer

single agency buyer agent

Answer

dual agent

Question 3

What legal action can you take if a vendor tells you he will accept your offer but later declines it?

Accepted Answer

You have none -- a verbal agreement is non-binding.

Answer

You can sue him and most likely get the house back.

Answer

You can file a lawsuit against him for damages and fraud, but it's unlikely that you'll get the house.

Question 4

Which of the following should you carry out before you begin house hunting?

Accepted Answer

check your credit score

Answer

shop for furniture

Answer

sell your house

Answer

all of the above

Question 5

Which of the following mortgage conditions offers you the greatest tax benefit?

Accepted Answer

30-year fixed rate

Answer

15-year fixed rate

Answer

20-year fixed rate

Question 6

You ought to browse around for loans in addition to houses. To give yourself the advantage over a seller, which status should you pursue?

Accepted Answer

pre-approval

Answer

pre-reviewed

Answer

pre-qualification

Question 7

Which kind of clause should you make sure the contract contains if you sign a deal with a buyer's agent?

Accepted Answer

release clause

Answer

lemon clause

Answer

fee escalation clause