Real Estate Finance Study Guide Questions - AI

What is the first step in determining "how much house" the buyer can afford?

• Pre-approval

• Final approval

• Pre-qualification

• Mortgage application

What is required for a mortgage application?

• Only a credit report

• Only financial documentation

• A mortgage application, credit report, and supporting financial documentation

• Only a mortgage application

What happens during the final approval step in the loan approval process?

• The lender evaluates the borrower's financial situation

• The lender evaluates the exact loan for a specific property

• The lender charges fees

• The lender evaluates the borrower's credit report

Who is responsible for bringing together a borrower and a lender to create a mortgage?

• Mortgage banker

• Real estate agent

• Mortgage broker

• Financial advisor

What is the role of a mortgage banker?

• To evaluate the borrower's credit report

• To provide mortgage financing using their own funds

• To bring together a borrower and a lender

• To charge fees for loan processing

What is the primary difference between a correspondent lender and a mortgage banker?

• Correspondent lenders use their own money at their own risk.

• Mortgage bankers use their own money at their own risk.

• Correspondent lenders work on a larger scale than mortgage brokers.

• Mortgage bankers work on a smaller scale than mortgage brokers.

What is the first step in the creation of a new mortgage?

• Loan processing

• Underwriting

• Origination

• Closing

Which of the following is NOT a factor that lenders consider when processing a loan?

• Borrower's income

• Borrower's credit

• Borrower's net worth

• Borrower's age

What is the process of deciding the level of risk a lender would take by giving a loan to a certain borrower for a specific property called?

• Loan processing

• Underwriting

• Funding

• Closing

What does loan servicing typically include?

• Collecting information from the buyer

• Deciding the level of risk for a loan

• Collection of monthly payments

• Providing the cash in the amount of the approved loan