Copyright

Fundamentals of Real Estate Financing Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. An approximation of fees and taxes to be charged at a closing that is given initially to the buyer before receiving the HUD statement is called a/an _____.

Question 2 2. Why does the Department of Housing and Urban Development require a closing statement be used at every federally funded transaction?

Question 3 3. Which of the following describes a straw buyer?

Question 4 4. Why might an otherwise honest home buyer be tempted to lie about the amount of his income when applying for a loan?

Question 5 5. What can a homeowner do to increase the maximum purchase price of a home if he is coming up against the debt-to-income ratio limit set by his lender?

Page 2

Question 6 6. Which of the following is a risk of using an adjustable rate mortgage to qualify for a larger loan?

Question 7 7. If certain fees increase before a closing, the Good Faith Estimate (GFE) must be

Question 8 8. What law requires that lender to provide the borrower with a copy of the GFE within a specific amount of days?

Question 9 9. How is the loan-to-value ratio calculated?

Question 10 10. What does a due-on-sale clause do?

Page 3

Question 11 11. What do we generally call the person who is entitled to money held in a trust account?

Question 12 12. Which of the following is not a possible consequence of failing to properly maintain a broker's trust account?

Question 13 13. What is the minimum amount of time the veteran or surviving spouse must plan on living in a VA mortgaged home?

Question 14 14. The maximum possible VA loan amount is based on what guidance?

Question 15 15. What's the minimum down payment for FHA financing?

Page 4

Question 16 16. Which of the following is correct about FHA loans?

Question 17 17. Which of the following must a seller typically have in order to offer seller financing?

Question 18 18. Which of the following is a disadvantage of seller financing for the buyer?

Question 19 19. What minimum loan-to-value ratio do lenders want on a conventional mortgage?

Question 20 20. What does private mortgage insurance do?

Page 5

Question 21 21. In U.S. real estate lending, which of the following was the approximate range of mortgage loan interest rates in the 1980's?

Question 22 22. In U.S. real estate lending, which of the following items would be a cause for concern for a lender reviewing a borrower's application in today's market?

Question 23 23. Which of the following is true regarding escrow accounts?

Question 24 24. What does the acronym RESPA stand for?

Question 25 25. Which of the following is the definition of a real estate credit on the HUD statement?

Page 6

Question 26 26. Which of the following is example of criminal enterprise types of mortgage fraud?

Question 27 27. Which of the following best describes a situation where a buyer can make the mortgage payments but has little ability to spend on anything else?

Question 28 28. What is a Good Faith Estimate?

Question 29 29. What is the difference between an interest rate and APR?

Question 30 30. Which of the following is not appropriate for the deposit into a broker's trust account?

Fundamentals of Real Estate Financing Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Alabama Real Estate Broker Pre-License Exam: Study Guide & Practice  /  Business Courses
Support