Quiz: Test Your Property-Buying Knowledge!
Are you ready to become a savvy property buyer? Put your real estate expertise to the test with this informative Property Buying Quiz. Explore key aspects of property buying, from the intricacies of mortgages to essential factors to consider when purchasing a home.
Get familiar with property-related terms and understand the steps involved in the buying process. Whether you're a seasoned buyer or just starting your property journey, challenge yourself with these engaging and informative questions and see how well you know the world of real estate.
So, what are you waiting for? Take this Property Buying Quiz and see how well Read moreyou know the crucial things about buying property!
- 1.
What is the first step in the property-buying process?
- A.
Hiring a real estate agent
- B.
Searching for properties online
- C.
Finalize a Budget
- D.
Viewing potential properties
Correct Answer
C. Finalize a BudgetExplanation
The first and the foremost step in the process to buy a house is finalizing a budget. Decide an approximate amount for which you want to buy a property.Rate this question:
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- 2.
What does the term "closing costs" refer to in property buying?
- A.
The down payment
- B.
Expenses associated with closing the deal
- C.
Monthly mortgage payments
- D.
Property maintenance costs
Correct Answer
B. Expenses associated with closing the dealExplanation
Closing costs are fees due at the closing of a real estate transaction in addition to the property's purchase price. Both buyers and sellers may be subject to closing costs.Rate this question:
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- 3.
Which of the following factors affects your mortgage eligibility?
- A.
Your credit score
- B.
The property's market value
- C.
The seller's asking price
- D.
The location of the property
Correct Answer
A. Your credit scoreExplanation
Lenders use your credit score to assess your creditworthiness and determine the risk of lending to you. A higher credit score typically indicates a lower risk, making it easier to qualify for a mortgage and potentially get better interest rates.Rate this question:
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- 4.
What type of property ownership grants you sole ownership of the property and the land it sits on?
- A.
Freehold
- B.
Leasehold
- C.
Condominium
- D.
Co-operative
Correct Answer
A. FreeholdExplanation
Freehold property can be defined as any estate which is "free from hold" of any entity besides the owner. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes however in accordance with the local regulations.Rate this question:
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- 5.
What is the recommended percentage for a down payment on a home purchase?
- A.
10-15%
- B.
15-20%
- C.
30-40%
- D.
40-50%
Correct Answer
B. 15-20%Explanation
It would be a good idea to make a down payment of 15%-20% of the cost of an expensive asset such as a house when availing a home loan.Rate this question:
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- 6.
What does "appraisal" mean in the context of property buying?
- A.
A final walkthrough
- B.
A legal document showing ownership
- C.
An estimate of the property's value
- D.
A visual inspection of the property
Correct Answer
C. An estimate of the property's valueExplanation
An appraisal is an assessment of the fair market value of a property, business, antique, or even a collectible.Rate this question:
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- 7.
What is the purpose of a home inspection during the property-buying process?
- A.
To secure a mortgage
- B.
To negotiate the final price
- C.
To assess the property's condition
- D.
To finalize the contract
Correct Answer
C. To assess the property's condition -
- 8.
What type of loan allows you to finance both the purchase of a property and its renovation costs?
- A.
FHA loan
- B.
Conventional loan
- C.
VA loan
- D.
Renovation loan
Correct Answer
D. Renovation loan -
- 9.
Which of the following is NOT a common contingency in a property purchase contract?
- A.
Financing contingency
- B.
Inspection contingency
- C.
Appraisal contingency
- D.
Acceptance contingency
Correct Answer
D. Acceptance contingency -
- 10.
What does the term "earnest money" refer to in property buying?
- A.
The first mortgage payment
- B.
A down payment on the property
- C.
A deposit to secure the offer
- D.
Real estate agent's fee
Correct Answer
C. A deposit to secure the offerExplanation
Earnest money is a deposit made to a seller that represents a buyer's good faith to make a purchase such as the acquisition of a new home.Rate this question:
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Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
-
Aug 03, 2023Quiz Edited by
ProProfs Editorial Team -
Aug 02, 2023Quiz Created by
Smriti Singh
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