Troy Quiz

What are the three most important criteria to qualify to buy a house?*

Employment history, marital status, and educational background.Social connections, job title, and credit card limits.Credit score, income, and down payment.Neighborhood preference, family size, and housing taste.
CORRECT! These three factors are the primary criteria lenders evaluate when approving a mortgage. Your credit score reflects your financial responsibility, income determines your ability to make monthly payments, and the down payment lowers the lender's risk and impacts loan options.
INCORRECT Feel free to try again.

What is the minimum credit score to typically qualify for a loan?*

740580700660
CORRECT! 580- There are programs that allow a credit score of 580, however the best terms and program flexibility and rates are achieved with higher credit scores.
INCORRECT Feel free to try again.

What do interest rates primarily represent when getting a mortgage?*

The cost of home insurance.The commission paid to real estate agents.The cost of borrowing money from the lender.The appreciation rate of the home's value.
CORRECT! The interest rate is the percentage charged by lenders on the loan amount. It represents the cost of financing the mortgage and affects monthly payments and total loan cost.
INCORRECT Feel free to try again.

What is the debt-to-income ratio and why is it important for getting a mortgage?*

It's a ratio that calculates the percentage of your monthly rent in relation to your overall debts.It's a measure of how much debt you have compared to your income and helps lenders determine your ability to manage monthly payments.It's an index that lenders use to determine the size of the home you're allowed to purchase.It's a measure of how much debt you have compared to your mortgage and is used to calculate property taxes.
CORRECT! DTI is calculated by dividing your total monthly debt obligations by your gross monthly income. Lenders use this to assess whether you can afford mortgage payments alongside your existing debts.
INCORRECT Feel free to try again.

What are the costs of homeownership beyond the mortgage?*

Property taxes, insurance, and parkingProperty taxes, utility bills, and parkingProperty taxes, insurance, and maintenanceProperty taxes and home maintenance costs
CORRECT! Beyond your mortgage payment, homeownership includes recurring costs like property taxes, homeowners insurance, and maintenance expenses.
INCORRECT Feel free to try again.

What is typically the lowest down payment percentage required for a conventional mortgage?*

0%3%10%20%
CORRECT! Many conventional loans allow a 3% down payment, especially for first-time homebuyers. Larger down payments reduce costs like private mortgage insurance (PMI).
INCORRECT Feel free to try again.

What is private mortgage insurance (PMI) and when is it required?*

PMI is required when the down payment is less than 10%.PMI is required when the down payment is less than 20% and it protects the lender if the borrower defaults.PMI is a type of home insurance required for all mortgages.PMI is optional insurance that homeowners can choose if they want extra protection.
CORRECT! PMI protects lenders from losses if a borrower defaults. It is required for conventional loans when the down payment is below 20%.
INCORRECT Feel free to try again.

What is a home appraisal?*

An assessment of a home's energy efficiencyA review of the home's title historyA check on the criminal history of a property's neighborhoodAn estimation of a home's market value
CORRECT! A home appraisal is conducted by a professional to determine the fair market value of a property, ensuring the lender doesn’t loan more than the home is worth.
INCORRECT Feel free to try again.

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