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Dollars and Sense: House Buying Quiz
by Staff
Buying a home can be both thrilling and frustrating, but knowing how the process works beforehand will give you a leg up in your search. Take the House Buying Quiz to see how much you know.

Which of the following should you do before you start shopping for a house?

  • sell your house
  • check your credit score
  • shop for furniture

When shopping for a house, you should also be shopping for a loan. Which status should you seek to give you an upper hand with a seller?

  • pre-qualification
  • pre-approval
  • pre-reviewed

What is amortization?

  • the process of taking out a second mortgage
  • the process of drowning in debt from a mortgage
  • the process of paying off the mortgage gradually

Which of the following mortgage terms gives you the maximum tax advantage?

  • 15-year fixed rate
  • 20-year fixed rate
  • 30-year fixed rate

What percent down payment should you make in order to avoid having to get private mortgage insurance?

  • 20 percent
  • 35 percent
  • 45 percent

How much should you expect to pay for a professional home inspection?

  • $50 to $100
  • $200 to $500
  • $800 to $1100

Which of the following types of real estate agent works for an office that does not take listings of any kind and represents only buyers?

  • exclusive buyer agent
  • single agency buyer agent
  • dual agent

If you sign an agreement with a buyer's agent, which kind of clause should you make sure the contract includes?

  • fee escalation clause
  • release clause
  • lemon clause

After a seller has told you he has agreed to accept your offer and then backs out, what's your legal recourse?

  • You can sue him and most likely get the house back.
  • You can sue him for fraud and damages, but you probably won't get the house in the end.
  • You have none -- a verbal agreement is non-binding.

Which of the following isn't a typical fee you'll have to pay in closing costs as a buyer?

  • seller's agent fee
  • notary fee
  • escrow fee