Guidelines For Taking A Detailed Loan Application Final Test

If borrowers accept an interest rate that is lower than the market, they must pay:

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:

The loan application process involves verifying employment and residence for the last:

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:

If the LTV is between 76% – 90%, the seller, builder, or Realtor maximum contribution is:

If the LTV is over 90%, the seller, builder, or Realtor maximum contribution is:

A copy of the canceled check for the Earnest Money Deposit is required if the amount of the check equals:

If the sales contract indicates that the seller is including any personal property items, such as a washer and dryer, or riding lawn mower:

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?

If any changes are made to the sales contract, the changes must be initialed by:

If the borrower’s name on the sales contract is “Billy Bob Jones” but the name on the loan application is “William R. Jones”:

“PITI” stands for:

Monthly principal and interest is calculated based on the:

The P & I Factor for a rate of 7.0% with a maturity of 360 months is 6.653025.
This factor represents:

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?

The only property insurance coverage required by the lender is known as:

The minimum property insurance coverage permitted by the lender must cover at least the:

Most borrowers will obtain an insurance policy that covers both the property and the contents. This type of insurance coverage is called:

Private mortgage insurance is required on all loans with a loan-to-value greater than:

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:

The advantage to the borrowers of accepting a higher rate and having the lender pay for private mortgage insurance is:

The primary role of private mortgage insurance is:

Property taxes are assessed based on the:

The maximum Front Ratio used as a guide for qualifying a borrower is:

The maximum Back Ratio used as a guide for qualifying a borrower is:

These Front and Back Ratios are used as a guide only, and may be exceeded if:

The temporary interest buydown may not increase more than:

Under RESPA, the lender is required to provide a Loan Estimate to the borrowers within:

A lender’s inspection fee is typically required:

The purpose of a Real Estate Tax Service fee is:

The purpose of a Flood Certification is to:

Another term for yield spread premium is:

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:

A search of public records to determine any outstanding liens or judgments currently recorded with the property is called:

The purpose of title insurance is:

Monthly interest on a mortgage is not due and payable until it has:

The interest collected at closing to cover the amount owed from the date of closing to the end of the month is called:

The special information booklet entitled Settlement Costs – A HUD Guide
must be provided to the borrowers:

This special information booklet is not required on the following transactions:

The Loan Estimate must be provided:

Truth-in-Lending in Advertising requires that, when quoting an interest rate to the borrower:

In preparing the Loan Estimate and calculating the APR,
those fees that affect the APR are called:

Borrowers applying for a loan on an investment property must have cash reserves equal to:

In determining the manner in which title will be held, if the borrower and co-borrower are married, typically title will be held as:

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:

If the LTV is 80% or less, gift funds are permitted and may include:

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:

The property seller may take a borrower’s existing property in trade as part of the down payment:

Borrowed funds may be used for funds to close as long as the funds are:

Underwriting guidelines require that you verify the borrower’s employment for the past: