International Baccalaureate (IB) Practice Exam

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Study International Baccalaureate Exams with tailored multiple choice quizzes and flashcards. Gain confidence with explanations and hints for every question. Ace your exams!

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Do you need to establish credit in order to buy a house?

True
False

The correct answer is: False

Establishing credit is a significant factor in obtaining a mortgage, but it is not strictly necessary for buying a house. While most lenders prefer applicants to have a credit history to evaluate their financial responsibility and ability to repay loans, there are alternative financing methods available. For instance, buyers could opt for seller financing or pay in cash, which would not require any credit history. Additionally, there are programs aimed at first-time homebuyers that may have more lenient requirements regarding credit history. These options demonstrate that it is possible to purchase a house without an established credit history, leading to the conclusion that the statement is false.