Guidelines For Taking A Detailed Loan Application OLD QUIZ
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Question 1 of 50
1. Question
If borrowers accept an interest rate that is lower than the market, they must pay:
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Question 2 of 50
2. Question
If borrowers accept an interest rate that is higher than the market rate, the lender may collect an extra profit on the loan, referred to as:
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Question 3 of 50
3. Question
The loan application process involves verifying employment and residence for the last:
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Question 4 of 50
4. Question
The seller, builder, or Realtor may pay the borrower’s closing costs, discount points, buydown subsidy, and first year PMI premium (if charged) subject to LTV limitations. If the LTV is less 75% or less , the maximum contribution is:
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Question 5 of 50
5. Question
If the LTV is between 76% – 90%, the seller, builder, or Realtor maximum contribution is:
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Question 6 of 50
6. Question
If the LTV is over 90%, the seller, builder, or Realtor maximum contribution is:
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Question 7 of 50
7. Question
A copy of the canceled check for the Earnest Money Deposit is required if the amount of the check equals:
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Question 8 of 50
8. Question
If the sales contract indicates that the seller is including any personal property items, such as a washer and dryer, or riding lawn mower:
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Question 9 of 50
9. Question
If the borrower’s spouse signs the sales contract and takes joint title to the property, but will not be obligated on the loan (as in the case of a spouse who is not employed and will not be contributing income for qualifying), the spouse must still sign what legal document?
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Question 10 of 50
10. Question
If any changes are made to the sales contract, the changes must be initialed by:
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Question 11 of 50
11. Question
If the borrower’s name on the sales contract is “Billy Bob Jones” but the name on the loan application is “William R. Jones”:
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Question 12 of 50
12. Question
“PITI” stands for:
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Question 13 of 50
13. Question
Monthly principal and interest is calculated based on the:
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Question 14 of 50
14. Question
The P & I Factor for a rate of 7.0% with a maturity of 360 months is 6.653025.
This factor represents:CorrectIncorrect -
Question 15 of 50
15. Question
If the loan amount is $100,000, and the rate is 7.0% with a maturity of 360 months, the monthly P & I would be?
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Question 16 of 50
16. Question
The only property insurance coverage required by the lender is known as:
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Question 17 of 50
17. Question
The minimum property insurance coverage permitted by the lender must cover at least the:
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Question 18 of 50
18. Question
Most borrowers will obtain an insurance policy that covers both the property and the contents. This type of insurance coverage is called:
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Question 19 of 50
19. Question
Private mortgage insurance is required on all loans with a loan-to-value greater than:
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Question 20 of 50
20. Question
Many lenders today offer the borrowers the option of accepting a higher interest rate and paying for the private mortgage insurance out of the extra money collected each month. This is called:
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Question 21 of 50
21. Question
The advantage to the borrowers of accepting a higher rate and having the lender pay for private mortgage insurance is:
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Question 22 of 50
22. Question
The primary role of private mortgage insurance is:
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Question 23 of 50
23. Question
Property taxes are assessed based on the:
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Question 24 of 50
24. Question
The maximum Front Ratio used as a guide for qualifying a borrower is:
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Question 25 of 50
25. Question
The maximum Back Ratio used as a guide for qualifying a borrower is:
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Question 26 of 50
26. Question
These Front and Back Ratios are used as a guide only, and may be exceeded if:
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Question 27 of 50
27. Question
The temporary interest buydown may not increase more than:
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Question 28 of 50
28. Question
Under RESPA, the lender is required to provide a Loan Estimate to the borrowers within:
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Question 29 of 50
29. Question
A lender’s inspection fee is typically required:
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Question 30 of 50
30. Question
The purpose of a Real Estate Tax Service fee is:
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Question 31 of 50
31. Question
The purpose of a Flood Certification is to:
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Question 32 of 50
32. Question
Another term for yield spread premium is:
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Question 33 of 50
33. Question
The originating lender that sells a loan in the secondary market may choose to give up the right to service the loan in exchange for a fee paid by the lender purchasing the loan. This fee is called:
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Question 34 of 50
34. Question
A search of public records to determine any outstanding liens or judgments currently recorded with the property is called:
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Question 35 of 50
35. Question
The purpose of title insurance is:
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Question 36 of 50
36. Question
Monthly interest on a mortgage is not due and payable until it has:
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Question 37 of 50
37. Question
The interest collected at closing to cover the amount owed from the date of closing to the end of the month is called:
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Question 38 of 50
38. Question
The special information booklet entitled Settlement Costs – A HUD Guide
must be provided to the borrowers:CorrectIncorrect -
Question 39 of 50
39. Question
This special information booklet is not required on the following transactions:
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Question 40 of 50
40. Question
The Loan Estimate must be provided:
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Question 41 of 50
41. Question
Truth-in-Lending in Advertising requires that, when quoting an interest rate to the borrower:
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Question 42 of 50
42. Question
In preparing the Loan Estimate and calculating the APR,
those fees that affect the APR are called:CorrectIncorrect -
Question 43 of 50
43. Question
Borrowers applying for a loan on an investment property must have cash reserves equal to:
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Question 44 of 50
44. Question
In determining the manner in which title will be held, if the borrower and co-borrower are married, typically title will be held as:
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Question 45 of 50
45. Question
Gift from a relative is permitted to satisfy part of the cash required to close.
If the LTV is between 90%-95%, gift funds are acceptable as long as the borrower contributes:CorrectIncorrect -
Question 46 of 50
46. Question
If the LTV is 80% or less, gift funds are permitted and may include:
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Question 47 of 50
47. Question
If the relative providing the gift has lived with the borrower and will continue to do so, a gift is permitted to be pooled with the borrower’s funds to satisfy the minimum cash down payment requirement if the relative has lived with the borrower for the last:
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Question 48 of 50
48. Question
The property seller may take a borrower’s existing property in trade as part of the down payment:
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Question 49 of 50
49. Question
Borrowed funds may be used for funds to close as long as the funds are:
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Question 50 of 50
50. Question
Underwriting guidelines require that you verify the borrower’s employment for the past:
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