Chapter 21- Study Guide

What are the two major events involved in the closing process?

• The buyer receives the keys and the seller vacates the property.

• The promises made in the sales contract are fulfilled and the mortgage funds are distributed to the buyer.

• The buyer signs the contract and the seller receives the payment.

• The property is inspected and the title is transferred.

The purpose of the final property inspection is to:

• Ensure all agreed repairs are completed

• Negotiate the final sale price

• Meet the neighbors

• Decorate the property

What documentation must the seller provide during the title process?

• Proof of ownership

• Appraisal report

• Mortgage statement

• Home warranty

Who is typically present at a real estate closing meeting?

• Only the buyer and their family.

• The buyer, the seller, and their respective real estate agents.

• The buyer, the seller, and the local community leaders.

• Only the mortgage lender.

What are the main concerns during the closing process?

• Ensuring all documents are signed and verified

• Scheduling the next meeting

• Choosing a new project manager

• Deciding on a new office location

What does the Real Estate Settlement Procedures Act (RESPA) require?

• Disclosure of loan terms to consumers

• Payment of referral fees

• Financing of commercial properties

• None of the above

What is the purpose of the Affiliated business arrangement (AfBA)?

• To increase competition among lenders

• To streamline the settlement process

• To provide loans to first-time buyers

• To reduce paperwork

The TILA-RESPA Integrated Disclosure (TRID) Rules were moved from HUD to which organization?

• Federal Reserve

• Consumer Financial Protection Bureau

• Department of Treasury

• Federal Trade Commission

A loan estimate (LE) must be delivered to the borrower no later than _______ after the loan application.

• three business days

• five business days

• seven business days

• ten business days

Identify the key components of settlement costs as outlined in the loan estimate (LE).

•  origination fee

   appraisal costs

   title insurance

   taxes

   settlement services

   inspections

   homeowner’s hazard insurance

•  origination fine

   appraisal costs

   title insurance

   taxes

   settlement services

   inspections

   homeowner’s hazard insurance