LOAN SIGNING AGENT EXAM ACTUAL QUESTIONS

LOAN SIGNING AGENT EXAM (ACTUAL / ) QUESTIONS

AND VERIFIED CORRECT ANSWERS

Discount Points/Buy Down Are an up-front fee paid to the lender at the time that you get your loan to lower the interest rate you qualified for. You can literally buy down an interest rate.

Default Lenders only lend on a house if they have the right to take the house from the borrower if the borrower fails to pay back the loan on the terms that were agreed upon.

Foreclosure If the borrower has not lived up to the terms of their loan, the bank can foreclose on the house. Meaning, the home can be taken away from the borrower. The bank then owns the house, not the borrower.

Lien A form of security interest granted over a property to secure the payment of a debt.

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Property Tax Taxes that are due to the county in which the property resides.They are typically due for payment twice a year.

Impound Account/Escrow Account Savings account for taxes and insurance".

Amortization Repayment of a loan with periodic payments of both principal and interest calculated to payoff the loan at the end of a fixed period of time.

Accrued Interest Interest earned but not yet paid.

Hazard Insurance Protects the insured against loss due to fire or other natural disaster in exchange for a premium paid to the insurer

PITI

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