Quiz: How prepared are you to buy a home?

Do you have a solid grasp on home purchasing terms and responsibilities? Take this quiz to make sure you’re headed toward your home ownership goals with the right information.

Tags: Home, Home buying, Mortgage
Published: February 27, 2020

There’s a lot to learn when it comes to home ownership, from how to handle closing costs to what you’ll be paying aside from your monthly mortgage. If you’re planning on looking at houses anytime soon, take this short quiz first to see just how prepared you are to start the home buying process. 

You scored out of .

How did you do?

5 or more correct: Ready to buy

It’s clear that you’ve done your home-buying homework. That will go a long way toward making this a smooth process. If unexpected challenges arise, ask questions so you can keep making informed decisions and trusting your gut.

4 or fewer correct: Brush up, buyer

Buying a home is a huge investment. It’s important to be crystal clear about the process so that you can make informed decisions. The good news is that simply taking this quiz counts toward your information-gathering process. Keep reading and asking lots of questions as you continue the exciting process of finding your new home.

Best answers: 1. B - It is what the bank will lend you; 2. D - All of the above; 3. D - Principal and interest on my home loan, plus taxes and insurance; 4. B - I’m factoring in yard maintenance, unexpected repair costs and more in addition to my monthly mortgage payment; 5. B - Between 2 - 5%; 6. C - Two months, minimum

Fast facts: What you need to know about home ownership

Know how much you can afford: Your home loan amount is how much the bank will give you, but you need to look to your current budget to dictate how much you can actually afford to spend. Those two numbers may or may not be the same, but you won’t know until you do some number-crunching. Experts say 28 percent of your gross income should be your maximum mortgage amount.


Home ownership costs go beyond mortgage payments: The cost of homeownership goes well beyond mortgage payments to things like new furniture, yard tools, plumbing repairs, furnace maintenance and more. Don’t forget to budget in a monthly contribution to an emergency fund. The home buying process doesn’t happen overnight


The process doesn't happen overnight: On average, it will take about a week to secure a loan, another week to find the right agent and six weeks to find the right home, according to the Home Buying Institute1. Then comes a couple days’ worth of negotiations, plus another month or two before you close and get those keys.


Plan ahead for closing costs: Closing costs are all the various fees associated with buying a home, which are paid at the close, or end of the process. This includes a lender fee, appraisal, real estate agent commissions and other various fees and taxes, generally totaling between 2 percent and 5 percent of the home purchase price. Formulate a plan ahead of time.


Feeling ready to buy your dream home? Get the home buying process started today. 


1“How Long Does it Take to Buy a House on Average?” Home Buying Institute. 2017. (www.homebuyinginstitute.com/how-long-to-buy.php)