RealEstateU NYS Continuing Education Course - Quiz 1 Flashcards

RealEstateU NYS Continuing Education Course - Quiz 1 Flashcards Which of the following is considered a step in the mortgage process...?All of the answer choices provided are correctPre-qualificationPre-approvalCommitment Letter All of the answer choices provided are correct What debt-to-high balance ratio should an individual maintain in order to help obtain a mortgage...?Less than 60 (% percent)Less than 75 (% percent)Less than 70 (% percent)Less than 50 (% percent) Less than 50 (% percent) Which of the following is considered the most significant in the mortgage process...?Commitment LetterAll are considered equally significantPre-approvalPre-qualification Commitment Letter From the bank's standpoint, what do borrowers use to cover the down payment on a house or pay for closing costs...?InterestAssetsDebtCredit Assets Who is responsible for issuing a list of fees to a borrower?The loan officerFannie MaeAll of the aboveThe credit union The loan officer In 1989, the mortgage industry began to widely use this company's credit score...?FICOTransUnionEquifaxExperian FICO A loan officer will issue the borrower a list of fees associated with the loan origination process after receiving which of the following documents?Letter of IntentSales contractClosing statementLoan application Loan application A pre-qualification is generally valid for how many days...?45906030 30 Debt-to-income ratio equals the borrower's ..........divided by their gross monthly income.Total monthly debt obligationsNet monthly incomeMonthly car paymentMonthly student loan payment Total monthly debt obligations The FICO credit score became widely used in what year...?1989199519792009 1989 Where do most clients find a loan officer...?From FacebookFrom a referralFrom Google SearchFrom Yahoo Search From a referral A homebuyer's needs to submit their last 30 days of pay stubs, 2 months of bank statements, and 2 years of tax documents, in order to allow a loan officer to complete what...?The Loan ApplicationHome InspectionPurchase ContractPre-qualification The Loan Application Your client, Lisa, just obtained a pre-approval letter from the bank. What will Lisa need to obtain next in order to get

her mortgage...?Contract of SalePre-qualificationCommitment LetterLetter of Intent Commitment Letter

Which of the following is NOT needed by a loan officer to complete the loan application...?Last 30 days of personal expensesLast 2 months of bank statementsLast 30 days of pay stubsLast 2 years of tax documents Last 30 days of personal expenses Credit history, or the ability to pay bills on time, accounts for roughly what percentage of a credit score...?40 (% percent)35 (% percent)50 (% percent)25 (% percent) 35 (% percent) Why may it be a good idea for your client, a home buyer, to obtain a pre-approval for a mortgage prior to going into contract on a property...?It will help you better understand what your client can affordAll of the answer choices provided are correctIt will help the homebuyer focus on properties they can affordIt will help reduce the stress of the closing process All of the answer choices provided are correct Who is typically responsible for hiring the appraiser, through a third party management company, during the home buying process...?The home inspectorThe real estate agentThe loan officerThe seller's attorney The loan officer The appraiser in a transaction is now hired by who...The mortgage brokerA third party management companyThe bankThe real estate broker A third party management company What do banks perform after establishing the 'clear to close', but before the closing date is set...?AppraisalDue DiligenceQuality ControlHome Inspection Quality Control What does a loan officer need from a borrower in order to complete the loan application...?Last 30 days of pay stubsLast 2 years of tax documentsLast 2 months of bank statementsAll of the answer choices provided are correct All of the answer choices provided are correct What is the limit on a credit card with a $5,000 balance and a debt-to-high balance ratio of 50%...?$10,000 (Dollars)$2,500 (Dollars)$7,500 (Dollars)$5,000 (Dollars) $10,000 (Dollars) What is the biggest factor in determining a credit score...?Paying bills on timeLength of credit historyNew creditAmount of debt Paying bills on time An individual's 'credit mix' accounts for roughly what percentage of their credit score...?25 (% percent)20 (% percent)10 (% percent)15 (% percent) 10 (% percent) Your client has entered into a contract to purchase a new home. In order to close on the deal, they need to obtain financing. Which of the following individuals serves an important role throughout the transaction...?The UnderwriterThe Bank ProcessorThe Bank OfficialThe Mortgage Broker The Mortgage BrokerYour The appraisal is accepted after this person reviews and signs-off on it...?The mortgage brokerThe loan officerThe

underwriterThe real estate broker The underwriter