Chapter 22-Buying A Home

Question 0

An offer in response to another offer

Answer 0

Counteroffer

Question 1

Expenses incurred in transferring ownership from seller to buyer in a real estate transaction

Answer 1

Closing costs

Question 2

The difference between the market value of property and the amount owned on it

Answer 2

Equity

Question 3

Real estate marketing service in which agents pool their home listings and agree to share commission on the sales

Answer 3

Multiple Listing Services

Question 4

A formal document that expresses interest in entering into a contract with someone else; how much you will pay for the house

Answer 4

Offer

Question 5

A loan to purchase real estate

Answer 5

Mortgage

Question 6

Mortgage is one on which the interest rate does not change during the term of the loan

Answer 6

Fixed-rate

Question 7

The…..of a home is the highest price that the property will bring on the market

Answer 7

Market value

Question 8

A formal agreement to the terms of an offer; saying “yes”

Answer 8

Acceptance

Question 9

A financial claim on property

Answer 9

Lien

Question 10

A portion of the purchased price of real estate that a buyer deposits as evidence of good faith

Answer 10

Earnest money

Question 11

Mortgage is one where the interest rate varies according to economic conditions

Answer 11

Adjustable-rate

Question 12

The legal document that transfer title of real property

Answer 12

Deed

Question 13

The meeting at which the title to the property is transferred from seller to buyer

Answer 13

Closing

Question 14

The market value of homes tends to increase over time

Answer 14

Appreciate

Question 15

A title that is free of any liens is considered to be

Answer 15

Clear

Question 16

Real estate agents earn….for their work, which is a percentage of the sale

Answer 16

Commission

Question 17

To ensure title is clear, you should order

Answer 17

Title search

Question 18

Real estate agents and bank professionals can…..or estimate the market value of your home by comparing it to similar homes recently

Answer 18

Appraise

Question 19

The interest you pay on your home loan, along with the property taxes, are tax deductible

Answer 19

True

Question 20

If you look hard enough, you can find a house that meets all your desires

Answer 20

False

Question 21

The most common source of downpayment money is banks

Answer 21

False

Question 22

A lien is a right or privilege one person has to use the land of another person

Answer 22

False

Question 23

A multiple listing service gives persons seeking to buy a home a greater exposure to available homes

Answer 23

True

Question 24

When a seller accepts an offer exactly as it was stated, this is called a counteroffer

Answer 24

False

Question 25

The more you spend for a house, the more money your real estate agent earns

Answer 25

True

Question 26

Most lenders require the borrower to have title insurance

Answer 26

True

Question 27

If you and the seller have agreed on the transaction, the house will be taken off the market until the deal is completed

Answer 27

True

Question 28

Home ownership offers

Answer 28

Financial advantages, quality-of-life advantages, and stability

Question 29

A legal document that establishes ownership

Answer 29

Title

Question 30

The cost of home ownership is lowered through

Answer 30

Tax deductibles

Question 31

Real estate agents typically earn commissions that are usually

Answer 31

5-7%

Question 32

Earnest money protects

Answer 32

Seller

Question 33

When you apply for a mortgage, what will be checked

Answer 33

References, credit history, and income

Question 34

Why might you view a house online

Answer 34

To view homes without being there in person

Question 35

To finance your purchase of a house, you must

Answer 35

Have funds for down payment, meet certain lending requirements, select type of mortgage

Question 36

What is the primary source of money in buying a house

Answer 36

Savings

Question 37

Who conducts a title search and issues a report

Answer 37

A title insurance company