Pop Quiz

Multiple Choice:

1. Which of the following item(s) are NOT normally required by the lender prior to closing:

a) Title search
b) Title insurance
c) Property survey
d) Life insurance
e) Homeowners insurance

2. It's possible to cut the cost of homeowners insurance by:

a) Choosing a higher deductible
b) Buying homeowners, auto and liability as a package
c) Exploring group coverage
d) Trying private flood insurance
e) All of the above

3. Why is the appraisal important?

a) It ensures the lender doesn't loan more than the home is worth
b) It's sometimes scheduled within a week of closing date
c) A low appraisal can jeopardize your home loan
d) It might require you to challenge your appraisal or renegotiate the contract price
e) All of the above

4. Which of the following is NOT part of preventing inflation on your settlement costs:

a) Retaining a copy of your loan's Good Faith Estimate of closing costs
b) Requesting a copy of the final HUD-1 Settlement sheet before closing
c) Comparing the Good Faith Estimate and HUD-1 form for major discrepancies or overcharges
d) Making the seller pay for your last month's rent
e) Contacting the lender or settlement agent about major discrepancies

5. Things to check during the final walk-through include:

a) Former owner's personal items moved out
b) Electrical, plumbing and appliances working properly
c) Items that convey such as light fixtures, bookshelves, appliances or window treatments haven't been removed
d) No damage
e) All of the above

True or False:

6. The closing is actually a two-step process where you a) sign the loan papers, and b) complete the sale transaction of the home.
True False

7. Title insurance covers you against past errors, fraud, or liens that might jeopardize your title or ownership of your new home.
True False

8. All home insurance policies are basically similar in coverage and price.
True False

9. Private mortgage insurance is a personal loan to cover you in case you can't make your mortgage payments
True False

10. It's possible to save money on the property survey by requesting an "update" from the surveyor who last examined the property.
True False

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