Understanding What You Can Afford Quiz

You've done your research and are well on your way to becoming an informed homebuyer. Now it’s time to test your knowledge. You may even learn something new.

1

Typically, what funds must you be prepared to pay at closing?

Typically, you need money set aside for both the down payment on the home and closing costs. You should also set aside money for emergencies and unforeseen circumstances, but that is not typically required to purchase a home.

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2

How much money should you save for an emergency fund?

The general rule of thumb is to have enough savings to cover six months of living expenses.

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3

Which of the following costs must you be prepared to pay as a homeowner?

It's important to understand all of the costs of homeownership. These include mortgage payments, property taxes, homeowner's insurance, utilities, and maintenance and repairs.

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4

What is generally considered a reasonable monthly payment for a home?

Typically, lenders want your monthly housing payment to be 28% of your monthly gross income.

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You’re quite an informed homebuyer – great job! Chances are, you have a good sense of exactly what you can afford. Keep up the good work!

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