First Time Home Buyers

Quiz
True or False:
______ _____ The front debt-to-income ratio is more important than the back debt to income ratio.
______ _____ The application for a mortgage is over 20 pages long.
______ _____ Banks care about your monthly bills, such as cable, electric and internet payments.
______ _____ First time home buyers made up 15% of all total purchases in 2013.
______ _____ The average down payment for purchasing a house is 11%.
______ _____ Anyone is eligible for a VA loan.
______ _____ You can get a mortgage with no down payment.


Key Terms

Debt to Income Ratio: The percentage of income that goes toward paying all debt payments (such as car
payments, credit card payments, car loan payments, student loan payments, child support payments,
alimony payments, and others)

Credit Scores: A numerical expression based on a level analysis of a person's credit files, to represent the
creditworthiness of that person. These scores range from 300-850.

Mortgage Insurance: An insurance policy which compensates lenders or investors for losses due to the
default of a mortgage loan, this insurance is paid as part of the borrowers monthly payment.

Funding Fee: An additional fee on a mortgage based upon the loan amount that is considered the cost
of doing the loan for the borrower.