#1
What is the typical minimum credit score required to qualify for a mortgage?
620
ExplanationMinimum threshold for eligibility.
#2
Which type of mortgage typically offers a fixed interest rate for the entire loan term?
Fixed-rate mortgage
ExplanationStable interest rate throughout the loan.
#3
Which of the following is NOT typically included in a mortgage payment?
Homeowner's insurance
ExplanationUsually billed separately.
#4
In the mortgage application process, what does 'closing costs' refer to?
Fees associated with finalizing the sale
ExplanationExpenses at property transfer.
#5
Which of the following documents is NOT typically required during the mortgage application process?
Credit card statements
ExplanationIrrelevant to loan assessment.
#6
Which of the following factors can affect your mortgage interest rate?
All of the above
ExplanationVarious factors influence the rate.
#7
What is the debt-to-income ratio used for in mortgage qualification?
To determine the maximum loan amount
ExplanationDetermines affordability.
#8
What is Private Mortgage Insurance (PMI) used for?
To protect the lender in case of default
ExplanationLender protection against default risk.
#9
What is the purpose of a pre-approval in the mortgage process?
To determine the maximum loan amount you qualify for
ExplanationSets a ceiling for loan eligibility.
#10
What is an escrow account in the context of a mortgage?
A fund held by a third party to pay property taxes and insurance
ExplanationFacilitates payment of property-related expenses.