Question 1

Which of the following groups customarily does NOT attend real estate closing?

Accepted Answer

A)  The buyer and seller
B)  The buyer's and seller's immediate families
C)  Real estate brokers
D)  Settlement agents

Question 2

RESPA requires lenders to disclosure to buyers a uniform settlement statement detailing all closing costs within:

Accepted Answer

A)  One day before the real estate closing
B)  Three days before the real estate closing
C)  One day after loan application
D)  Three days after loan application

Question 3

Which of the following is typically NOT one of the financing costs associated with the financing of real estate?

Accepted Answer

A)  Closing fees
B)  Loan application and credit report fees
C)  Property inspection and appraisal fees
D)  Loan discount and prepaid interest fees

Question 4

RESPA requires a lender to disclose good faith estimates of closing costs within three days of loan application

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is typically NOT one of the settlement costs that are escrowed over the life of the loan?

Accepted Answer

A)  Property taxes
B)  Mortgage insurance
C)  Selling commissions
D)  Hazard insurance

Question 6

Financing costs are usually paid by the lender to either the borrower/buyer or the seller

Accepted Answer

A) True 
 B)False

Question 7

RESPA requires lenders to disclose to buyers a good faith estimate of certain closing costs within:

Accepted Answer

A)  One day before the real estate closing
B)  Three days before the real estate closing
C)  One day after loan application
D)  Three days after loan application

Question 8

FTL requires that the lender disclose an estimated cost of financing within three days of loan application

Accepted Answer

A) True 
 B)False

Question 9

The APR estimate must be accurate only to the nearest ___ percent.

Accepted Answer

A)  1/2
B)  1/4
C)  1/8
D)  1/16

Question 10

Someone with a credit score of 900 is likely to only qualify for a subprime loan

Accepted Answer

A) True 
 B)False

Question 11

The APR for an adjustable rate mortgage loan is an accurate measure of the actual cost of funds to the borrower

Accepted Answer

A) True 
 B)False

Question 12

Title insurance protects the buyer from title claims against the property

Accepted Answer

A) True 
 B)False

Question 13

Pro-ration involves a professional who rates the quality of the property

Accepted Answer

A) True 
 B)False

Exam 8: Underwriting and Financing Residential Properties

Which of the following groups customarily does NOT attend real estate closing?

Correct Answer
verified

Pro-ration involves a professional who rates the quality of the property

Correct Answer
verified

Someone with a credit score of 900 is likely to only qualify for a subprime loan

Correct Answer
verified

Title insurance protects the buyer from title claims against the property

Correct Answer
verified

FTL requires that the lender disclose an estimated cost of financing within three days of loan application

Correct Answer
verified

The APR for an adjustable rate mortgage loan is an accurate measure of the actual cost of funds to the borrower

Correct Answer
verified

The APR estimate must be accurate only to the nearest ___ percent.

Correct Answer
verified

Which of the following is typically NOT one of the financing costs associated with the financing of real estate?

Correct Answer
verified

RESPA requires lenders to disclose to buyers a good faith estimate of certain closing costs within:

Correct Answer
verified

Financing costs are usually paid by the lender to either the borrower/buyer or the seller

Correct Answer
verified

Which of the following is typically NOT one of the settlement costs that are escrowed over the life of the loan?

Correct Answer
verified

RESPA requires a lender to disclose good faith estimates of closing costs within three days of loan application

Correct Answer
verified

RESPA requires lenders to disclosure to buyers a uniform settlement statement detailing all closing costs within:

Correct Answer
verified

Exam 8: Underwriting and Financing Residential Properties

Which of the following groups customarily does NOT attend real estate closing?

Correct AnswerverifiedShow Answer

Pro-ration involves a professional who rates the quality of the property

Correct AnswerverifiedShow Answer

Someone with a credit score of 900 is likely to only qualify for a subprime loan

Correct AnswerverifiedShow Answer

Title insurance protects the buyer from title claims against the property

Correct AnswerverifiedShow Answer

FTL requires that the lender disclose an estimated cost of financing within three days of loan application

Correct AnswerverifiedShow Answer

The APR for an adjustable rate mortgage loan is an accurate measure of the actual cost of funds to the borrower

Correct AnswerverifiedShow Answer

The APR estimate must be accurate only to the nearest ___ percent.

Correct AnswerverifiedShow Answer

Which of the following is typically NOT one of the financing costs associated with the financing of real estate?

Correct AnswerverifiedShow Answer

RESPA requires lenders to disclose to buyers a good faith estimate of certain closing costs within:

Correct AnswerverifiedShow Answer

Financing costs are usually paid by the lender to either the borrower/buyer or the seller

Correct AnswerverifiedShow Answer

Which of the following is typically NOT one of the settlement costs that are escrowed over the life of the loan?

Correct AnswerverifiedShow Answer

RESPA requires a lender to disclose good faith estimates of closing costs within three days of loan application

Correct AnswerverifiedShow Answer

RESPA requires lenders to disclosure to buyers a uniform settlement statement detailing all closing costs within:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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