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 homeownership goals with the right information.
There’s a lot to learn when it comes to homeownership, 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 homebuying process.
1. You’ve been pre-approved for a home loan. Congratulations! What does that big number tell you?
A. It’s the amount I can afford to spend on a home.
B. It’s the amount the bank will lend me for a home.
2. What should you look for in a real estate agent?
A. Good reviews/referrals
B. Strong knowledge of the area and market
C. A sense of connection and trustworthiness
D. All of the above
3. What are you typically paying with your monthly mortgage payments?
A. Principal and interest on my home loan
B. Principal and interest on my home loan, plus real estate taxes
C. Principal and interest on my home loan, plus insurance
D. Principal and interest on my home loan, plus taxes and insurance
4 . What other expenses will you need to factor in each month aside from your mortgage?
A. There won’t be many changes beyond switching from my rent payment to a mortgage payment.
B. I’m factoring in yard maintenance, unexpected repair costs and more, in addition to my monthly mortgage payment.
5. How much can you expect to pay in closing costs?
B. Between 2-5%
C. Between 7-10%
6. How long do you expect the entire homebuying process to take?
A. A couple of weeks
B. About a month
C. Two months, minimum
(Answer key: 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)
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.
Fast facts: What you need to know about homeownership
Feeling ready to buy your dream home? Get the homebuying process started today.