1. Which two of the four Cs of credit have to do withearning potential and avaliable cash?

A). Capital B). Credit history C). Capacity D). Collateral

2. When you take out a mortgage, your home becomes collateral.TRUE or FALSE

3. Pick correct statement

A). Prequalification is a lender's estimated of how much you canafford to borrow, bases on your gross income and debts.

B). Prequalification means that you have approved from a lenderto borrow up to $100,00

4.What are the disadvantages of a contract for deed? selectTWO

A). Allows time to become mortgage redy

B). Seller retains the right to the property

C). Down payment and closing costs can be negotiates

D). No professional apperaisal is required, so you might paymore than the home is worth.

5. Whats the primary benefit of being prequalified for amortgage?

A). Helps with the moving expenses B). Ensures that you'relooking only at homes you can afford C). Eliminates the nees forearnest money

6. which of these is a sign that you're dealing wih someoneengaged in unfair lending practices?

A). They charge inappropriate high intrest rates, fees andclosing costs

B). They contact you first

C). They discourage you from reading loan documents.

D). They push you to apply for more than you can afford

E. All of the above

7. Which of these loan options is strongly recommended for thefirst time buyers? Choose ALL that apply.

A). Adjustable-rate B). Contract for deed C). Ballon D). Fixedrate E). Interest only

8.Lenders usually wants to see 12-18 months of positive credithistory (Low balances, no late or missed payment, etc) beforeapproving you for a mortagage. TRUE or FALSE.

Answer rating: 100% (QA)

1 A Capital C Capacity The two Cs of credit that have to do with earning potential and available cash are capacity and capital Capacity refers to a bo... View the full answer