A complete guide to buying your first home

The video tutorial guides viewers through the home buying process, starting with budgeting and understanding down payments. It explains the importance of getting pre-approved for a mortgage and maintaining a good credit score. The tutorial covers finding a home, making an offer, and choosing between fixed and adjustable rate mortgages. It also discusses reviewing loan estimates, conducting home inspections and appraisals, and finally, closing the deal to gain ownership of the property.

What is the recommended maximum percentage of your gross income to spend on a mortgage?

• 20%

• 30%

• 40%

• 50%

Why is a larger down payment beneficial when buying a home?

• It increases the total loan amount.

• It decreases the interest rate.

• It shortens the loan term.

• It reduces the need for private mortgage insurance.

What is a crucial factor in the mortgage pre-approval process?

• Your age.

• The type of car you drive.

• Your credit score.

• The number of credit cards you own.

What should you avoid doing while your mortgage application is pending?

• Contacting your bank.

• Saving more money.

• Taking on new debt.

• Paying off existing debts.

What is a key advantage of a fixed-rate mortgage?

• The monthly payment remains constant.

• It starts with a lower monthly payment.

• It allows for early repayment without penalty.

• The interest rate can decrease over time.

What is the purpose of a home appraisal?

• To determine the home's market value.

• To inspect the home's condition.

• To negotiate the purchase price.

• To finalize the mortgage terms.

What is the final step in the home buying process?

• Receiving the pre-approval letter.

• Making an offer.

• Getting a loan estimate.

• Closing on the property.