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Quiz: Should you buy that house?
by Staff
With low interest rates and home prices, it feels like a great time to buy a house. Homeownership is about more than your mortgage payment, though, so before you hand your real estate agent that earnest money, you might want to consider whether you're really ready to buy. Think you know all there is to know about buying a house? Test your knowledge with this quiz!

Before you begin shopping for a home, what's the most important thing to do?

  • Save up for a down payment.
  • Make sure your credit is in good shape.
  • both of the above

What's the best way to decide on your price range when shopping for a home?

  • Your monthly payment, including mortgage, taxes, insurance and association fees, should be around 18 percent of your monthly income.
  • Your monthly payment, including mortgage, taxes, insurance and association fees, should be around 28 percent of your monthly income.
  • Your monthly payment, including mortgage, taxes, insurance and association fees, should be around 38 percent of your monthly income.

Which of the following homes should you walk away from?

  • The house is in a great school district but has only one bathroom.
  • You're not crazy about the street the house is on, but it has the front porch you always dreamed of.
  • You hate the tile in the kitchen, but you love the neighborhood.

You shouldn't buy a house if you're not planning to stay in the same city for at least:

  • 2 years
  • 5 years
  • 7 years

Your home inspection reveals that a house needs a new roof and the electrical system isn't up to code. You should:

  • Walk away.
  • See if the seller would be willing to complete the repairs before closing.
  • Push back closing so you can repair the electrical system before moving in.

Closing costs can run several thousand dollars. If you don't have cash to cover them:

  • You shouldn't buy the house.
  • You should try to negotiate lower fees with your lender.
  • You can roll closing costs into your home loan.

The house you're looking at is what some might call a fixer-upper. What should you consider when deciding whether to buy?

  • Do you have the time and money to get the house back into good shape?
  • Is it in a good location?
  • both of the above

When might you be better off renting than buying a home?

  • You are looking to relocate in the next few years.
  • Your kids are all in college.
  • both of the above