1)What should be the first step in the homebuying process?

A.Interview three realtors.

B.Determine the price range for houses in your target area.

C.Determine how much you can afford to pay monthly for a mortgage.

D.Compare the costs of buying versus renting.

2)If you have a lot of debt such as a carloan, studentloan, line of credit and credit card balances which you carry from month tomonth, which will be most relevant in determining how much mortgage you canafford?

A.GDS ratio

B.TDS ratio

C.HBP

D.Both TDS and GDS equally

3)What is the purpose of getting a preapproval certificate from a financialinstitution?

A.To provide you with a guideline on how large a mortgage you can afford

B.To guarantee you a mortgage interest rate valid for 30 days

C.To guarantee funding so you can make an offer on a house

D.To guarantee you will be approved for a mortgage

4)Onaverage, which is the largest category for claims tohomeowner's insurance?

A.Fire and lightning

B.Wind and hail

C.Water damage and freezing

D.Other claims not specified above

5)A house for sale is listed at$310 000 and you manage to win the competitive bid with an offer of $312000. The appraisal indicates the value at$295 000. What will be the conventional mortgage loan amount approved by thebank?

A.$221 250

B.$248 000

C.$249 600

D.$236 000