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Need answers to this test here is link if u dont wanna go there here is the test ill copy paset it.

http://www.buying-new-home.com/

1) The first of the month has arrived and you just cashed your monthly paycheck. You want to buy some delicious fresh pure Lorlor juice, a rare and wonderful beverage that your family loves when you find it for sale in your area. You know everyone in your family of four drinks exactly 4 ounces each every morning you have it available, never more never less. Stores do not often carry Lorlor juice because once it spoils it can be poisonous although it remains perfect until the moment of spoilage. The scientists accurately predict the exact spoilage day and producers print it on each package. You notice a new shipment in your local store marked not to drink after the 27th.
Which represents the best value?
A. 1 liter @ $4.49
B. 8 oz. @ $1.99
C. 1 pint @ $2.20
D. 500 ml. @ $2.20

2) Your family loved the Lorlor juice and drank it all. On the night of the 23rd you discover not only does the store have more Lorlor juice but they placed it on sale.
Which do you buy?
A. 1 liter @ $2.49
B. 1 quart @ $2.19
C. ½ gallon @ $3.99
D. 1 gallon @ $4.99

3) The end of the month has come and you only have $12 left. Your family wants your special Cheesy Chili, they have been known to eat it 5 nights in a row they love it so much. Basically, you mix one part cheese, one part tomato with four parts meat. Sometimes to make it special you add a pinch or two of saffron or serve it with corn chips. A search of the cabinets reveals the basic spices but nothing else you need. You leave the house with this shopping list: meat, cheese, tomatoes, saffron, corn chips and lottery tickets.
What do you buy? Do not forget the 5% state tax.
Quantity Size Item Price
4 Ounces Domestic Cheese $2.00
¼ Kilogram Imported Pre-Shreaded Cheese $3.00
10 Chances Lottery Ticket $1.00
16 Ounces Chopped Sirloin $4.00
2 Pounds Ground Chuck $6.00
1 Pinch Saffron $1.00
4 Ounces Tomatoes $1.00
3 Ounces Corn Chips $1.00

Should you buy a house?
4) You think the time has come to buy your first home. With a salary of $60,000 and a $30,000 down payment gift from your father in law everything seems in order. Your spouse, who does not work, feels very very uncomfortable with buying a house. All your parents, friends and everything you have read indicate you should buy a house now.
Yes
No

5) You and your spouse have lived life with two common goals for the last 44 years:
Move from the frigid North to sunny Florida as soon as you both turn 65
Buy a house.
Problems with jobs, medical bills, and putting the kids though college have put off all your goals until now. A realtor friend of yours has just listed the nicest house on the block where you have been renting for the last fifteen years. The price is fair, you have the down payment and can afford the monthly payments.
Yes
No

6) You have lost your job, you don’t know when you will find another. Your cash available for bills is down to $1500.00 for the month. These are your bills, which do you pay?
Pay Amount Due Name Rate
1100 1st Mortgage 8%
400 Loan to Aunt Gertrude 11%
325 American Ex Optima 15%
175 Discover card 10%
125 Diners Club 19%
75 MBNA Visa 17%
225 Chase Visa 9%
300 CitiBank MasterCard 18%
275 Fleet MasterCard 16%
150 Electric Bill 12%
250 Gas Bill 12%

7) Should you buy a house?
You have determined you have enough cash flow to pay the mortgage and still put $300 in savings each month. You have enough saved for the down payment and still have 6 months worth of payments as a reserve in savings. Although you have researched everything, you and your spouse remain a bit scared and anxious.
Yes
No

8) You have it all figured out: You net $2400 per month. $1500 for the new mortgage, $200 car payments-gas-auto insurance, $50 house insurance, $350 for food, $125 Utilities, $175 Real Estate Taxes.
Yes
No

9) Choose two long-term goals.
Pay this month’s cable and Electric Bill
Reduce Credit Card Debt by $500
Buy a Vacation Home Big Enough for Grand Children
Get a Raise at Work
Purchase a HDTV Home Theatre System
Accrue a Million Dollars and Retire
Win This Week’s $10,000,000 Lottery
Buy a Mercedes to Replace Your Yugo

10) You have $1200 available for these items, which do you pay?
50 Anniversary Gift for Spouse
200 New Car Stereo
100 Tickets to Special Event
600 Mortgage
50 Savings
150 Jewelry
300 Fix Major Roof Leak
50 Electric Bill
400 Weekend in Vegas
250 Credit Card Minimums

11) You need an extra $1000 to pay all of your bills including your two mortgages, utilities and minimums on credit cards. Just when things look bleak you get an unsolicited credit card in the mail with a $5000 credit limit and cash advance checks.
What do you do?
A. Use an Advance Check to pay the $1000 and use the other $4000 limit as needed in the future.
B. Use the Advance Check to pay the $1000 but do not use the new card or checks anymore.
C. Do not do anything just yet, before you get late on the payments review your entire financial situation to see what you need over the long run
D. Pay what you can with the money you have without the extra $1000, cut the card up, rip up the checks and do not get in more debt.

12) You walk into a standard local realtor’s office and she starts to show you homes. Describe the relationship.
A. Realtors normally work for the seller. Your realtor may never even meet the seller, but the seller will pay them and their loyalty rests with the seller.
B. Your realtor owes their loyalty to you, even if the seller side pays them. Only the listing realtor owes their loyalty to the seller.
C. Your realtor works for you, you pay them they owe their loyalty to you. That is the way it always is and the way it should be.
D. When you hire a realtor because you want to buy a house they become a buyers broker and they owe their loyalty to you.

13) Match the new homebuyers to their new homes:
Fred & Ethel Have had enough managing apartments, they want to move where they will have someone else keep up the property.
Donald and Daisy Bringing up Donald’s nephews, Scrooge McDuck and room for a Goofy visit.
Herman & Lilly Herman wants a place where he can open his new business, human taxidermy.
George & Gracie Very old and not much money.
Rickey & Lucy Rickey does not drive, needs to walk to work at the club.
Ken & Junior Single father bringing up baseball playing son.
Nancy Nerd & Gary Geek Specifically need DSL or Cable for high speed internet access for their new home business and 5 employees.
Missy Trump Donald’s daughter, her trust fund will buy her real property anywhere in the city.
A. Two bedroom colonial in very small town with a great school system
B. Downtown Condominium near the clubs
C. Two bedroom ranch in a southern town where citizens over 70 pay no real estate taxes
D. Large Tudor 8 miles from the nearest neighbor, commercially zoned
E. Downtown Co-operative apartment
F. Older home with a huge dark parlor on the first floor, commercially zoned
G. Five bedroom Victorian near the ballfields in the same area as A.
H. Downtown Condominium near C.

14) Pick a Realtor:
A. Your Cousin from a town in the other end of the state 4 hours away
B. Someone you never met from the branch of a National Real Estate Company located in the town where you want to move.
C. The realtor you used to buy your last house in the town just over the state line from the town where you want to move.
D. A college friend exclusively working with large commercial properties in the exact town where you want to move.

15) How can you find a new home?
A. Let the realtor find one using the multiple listing systems, that’s why you contacted them
B. Look yourself in the newspaper
C. Find a house though an online foreclosure or FSBO page
D. Combining any or all of the above is fine.

16) While your career as a social activist pays almost nothing, your spouse’s job as a renovation contractor has been going well and you decide you can afford a house mortgage of $70,000. You have a down payment of $20,000. Choose from these houses:
A. The perfect house in a neighborhood full of prostitution and drug dealers. Price: $90,000
B. An old Victorian you think has a lot of potential in a nice area in need of a new roof, siding, windows and interior painting. The realtor estimates labor and materials for repairs at $30,000. Price $75,000.
C. A home so nice it has already been nominated for the Best Homes USA award which will pay the winning owner $25,000. Price $115,000.
D. A ranch that makes you feel sick every time you drive past it let alone go in it or live in it. Price $70,000.

17) Which problem should you worry about least?
A. Evidence of high electric bills
B. Very old paint chipping on windows
C. Lawn has not been mowed in weeks.
D. Doors do not open and close smoothly.

18) You like a house with a listing price of $150,000.
Which statement is true?
A. You want to offer $120,000. Your realtor says you cannot offer less than $130,000. Your starting offer must be $130,000.
B. You can offer $100,000 and see if you get lucky because there is no down side to starting with a very low offer, you can always come up.
C. Someone has just signed a contract with the owner for $145,000. You can offer the full asking price of $150,000 and still get the house.
D. You can offer $125,000 and on top of that demand that the owner fix the roof, replace the furnace, put in new windows, repaint all of the colors to your liking and add a new garage.

19) Which statement is false?
A. You offer $149,990. The owner says $150,000 firm means $150,000 firm – no deal.
B. You offer the full $150,000 asking price but contingent on the owner fixing a broken window; they cannot be bothered fixing the window – no deal.
C. You offer the full $150,000 asking price but the owner points out that the realtor’s listing expired yesterday and now they want more – no deal.
D. When you are very very very close but cannot quite make a deal the realtor has a legal obligation to cut their commission to make the deal happen.

20) Which statement is true?
A. You must hire a home inspector. It is more than a good idea it is required.
B. Buyers should not allow the seller to pay the home inspector.
C. Home inspectors must have a college degree.
D. Home inspectors should be able to repair any problems that they discover.

21) Which is the most unlikely?
A. A loan from Fannie Mae or Freddie Mac issued directly by the U.S. Government.
B. A seller providing all of the financing so there is no need for a bank or mortgage company.
C. A mortgage which requires a down payment of absolutely zero.
D. Getting a mortgage right after a bankruptcy discharge.

22) Match the new homebuyers to their new mortgages:
Liz Taylor She knows she will probably be divorced and moving again soon.
Tim "The Toolman" Taylor Wants a handyman's special he can fix up.
Popeye and Olive Oil Popeye wants to come home from his sea travels and settle in one place for 30 years that does not rock.
Whimpy Did not really pay for those hamburgers Tuesday, now he has very bad credit.
Dorthy Not much income, wants a small place in rural Kansas.
W.O. Oz Almost no income in the wizzard business, can put very little down.
Samantha & Darrin Samantha somehow knows for sure rates will be down in a few years.
B. Bailey Just honorably discharged from the Army. No money for down payment.
A. Subprime Mortgage
B. 95% mortgage with PMI
C. VA Mortgage
D. 203(k) Loan
E. Fixed rate with 2 points
F. Convertable Mortgage
G. Adjustable rate - no closing costs.
H. RECD Loan

23) Three of these can represent perfectly acceptable ways to start the mortgage process, which is most likley to be a scam?
A. You call a loan officer and he offers to come over and take the application at your place because it's "easier".
B. You enter information on a secured internet form you found online including your social security number.
C. You get an unsolicited call from a fellow who says he represents the local bank, you give him the information on the phone.
D. You contact a bank from 2000 miles away who claims they can do everything by phone, fax and internet without ever meeting you.

24) You take a $150,000 mortgage at 11% interest.
Which of the following statements is false?
A. You can pay a fair amount of extra principal down on your loan (say even doubling the payment) every month or never, it's your choice whenever you want to and there will be no penalty imposed by the bank as long as you make the minimum scheduled payment.
B. If you could improve your credit to reduce the rate to 8.5% over a thirty year term you would save about $100,000 in total payments.
C. Over a 30 year term you will pay a total of over $500,000. By increasing your payment by only around 18% you may reduce the term by ten years and save over $200,000.
D. If you take a 20 year term adjustable mortgage at 11% and in 5 years the rate goes to 12%, then in 10 years to 13% and in 15 years to 14% you have 5 years at each rate for an average of 12.5%. This costs the same as a mortgage at 12.5% fixed from the start and you save money the first ten years.

25) In 3 of these the broker or lender is trying to take advatage of the borrower, 1 of these falls within common standards of the mortgage industry.
Which one?
A. A mortgage broker puts together a sub prime loan for $750,000. They try to charge a fee of $15,000.
B. The broker gets you a loan where you pay no points or fees. In the settlement statement there is a line where it shows the lender paid the broker directly an 8 point yield spread premium so you could avoid paying them yourself.
C. You do not have a 20% down payment so the lender says you have to pay for PMI and Credit Life Insurance.
D. You have a bankruptcy from eleven years ago so you are only offered a loan at a higher interest rate because of your credit.

26) Match the acronyms to the definition:
A number representing your credit score A. VOE
The ratio of how much you spend on loans and credit cards compared to what you make B. PITI
A report from where you work about what you make C. LTV
What you will pay the bank, town and property and casualty carrier all together D. FICO
The ratio of the value of the new home to the new mortgage E. VOD
A report from your bank indicating how much money they are holding for you F. DTI

27) The moving van pulls up to your new home, overcome with anticipation, joy, and the weight of the refridgerator you made them carry in on their back, your spouse spontaneously explodes. Which is true?
A. The bank can call the mortgage and take the house back because your spouse made much more money than you and you would not have qualified without that income.
B. Your next payment on the house will be due as if nothing happened and in the long run no laws, bank sympathy or policy will protect you from foreclosure if you do not make payments.
C. Since you never moved into the house it's like a marriage that was never consumated and you can "annul" or get out of the home purchase.
D. Credit card companies due $25,001 or more on accounts used by your spouse before you ever met may immediately swoop in and take partial ownership of the house.

28) Your mortgage application at the local bank has been turned down.
Which is false?
A. Even if something as serious as a bankruptcy caused you to be turned down, you can almost surely get loan from a mortgage broker who works with subprime loans if all of your other ratios meet their specifications.
B. Even if you could get a mortgage elsewhere you may use a financing contigency clause to get out of the house contract and get your deposit back.
C. Assuming the only issue was one credit card charged off a few years ago, you could pay the card off in full and the bank would then approve the loan.
D. The bank right next door, even though they have a deserved reputation for being tough, might approve the loan if you tried to apply with them.

29) Match the information to where you will find it in the closing documents (you may use answers more than once):
Cash from borrower The total dollars you have to bring to the closing to buy the house.
Where you promise to pay back the money You also pledge to pay it back no matter what happens to the house.
Rate Disclosure The lender confirms on this document if the rate is fixed or variable
Mistakes at the closing? This says if there are clerical errors you must sign new documents with the correct information after the closing.
Transfer Estimates The lender discloses what the chances are your loan will be sold to another entity or that someone else will process your payments.
Pre-paid Interest Money you will pay at the closing for interest in advance so that the payments will come due on the first of the month in the future.
Estimated Payments How much you will pay over the life of the loan, total payments and total finance charges.
Security Document This document pledges the home as collateral for the loan and says the bank can take it back if you default on payments.
A. Errors and Omissions Complience
B. HUD1
C. Mortgage
D. RESPA Servicing Disclosure
E. Promissory Note
F. Truth In Lending Statement

30) Which is true?
A. If you fail to keep up home insurance the mortgage company will get it for you (sometimes at triple the cost) and make you pay for it or they can foreclose.
B. When a flood is declared a "National Disaster" flood insurance for everyone in the flood zone based on the national "Flood Plain" maps gets their damage paid for automatically.
C. All fire insurance policies all pay to rebuild your home the way is was before the fire, that's what fire insurance policies are for.
D. Burgler alarms may be a good idea, but they have nothing to do with home insurance. This is just another of your tricky answers, but this final time I caught you!. The ONLY true response is D. The rest are wrong. So there! Na Na Nana Na.