Are You a Smart Home Buyer? Take Our Quiz to Find Out!

Home buying quiz from Raccoon Valley Bank

How well do you know the ins and outs of purchasing a home?

Along with spring comes warmer weather, green grass and home buying season! “For Sale” signs will soon be popping up in neighborhoods across the country. If you are looking to purchase a home for the first time, it is important to educate yourself on the process of buying a home in order to save yourself money, time and hassle. Take our quiz to find out how prepared you are!

  1. What matters more for a mortgage: being prequalified or preapproved?
    1. Prequalified
    2. Preapproved
  2. You can’t use a buyer’s agent when buying a home “For Sale By Owner”.
    1. True
    2. False
  3. What percentage of the purchase price should you expect to pay for closing costs?
    1. 1%
    2. 3% to 6%
    3. 10%
  4. The title insurance you have to buy to get your own is for your own protection.
    1. True
    2. False
  5. If you take money from your Roth IRA to purchase your home, you must pay it back before retirement.
    1. True
    2. False
  6. Even when rates are rising, an adjustable-rate mortgage can still be a good deal for some people.
    1. True
    2. False
  7. How much will a home inspection usually cost you?
    1. $75-$100
    2. $300-$400
    3. $800-$1,000
  8. Who needs private mortgage insurance?
    1. Buyers with a down payment less than 20%
    2. Buyers with a down payment more than 20%
    3. It’s mandatory for all buyers
  9. If you are buying a condo and the realtor tells you that two other units in the same building sold for $200,000 and $225,000, what should your offer be?
    1. You need more information
    2. $185,000
    3. $200,000
    4. $212,500
  10. When you file your federal taxes, what costs can you deduct from your income as a new homeowner?
    1. Mortgage interest
    2. Property taxes
    3. Points paid at settlement
    4. All of the above

How did you do? Even if you didn’t fair very well on the quiz, we hope that you have learned more about the process of buying a home so you feel confident moving forward! Raccoon Valley Bank wants to help you purchase your first home. Visit our Mortgage Center for more information and to apply for a mortgage today!

 

Answers: 1. preapproved; 2. false; 3. 3-6%; 4. false; 5. false; 6.  true; 7. $300-$400; 8. Buyers with a down payment less than 20%; 9. You need more information; 10. All of the above

We're Centered Around You