About This Chapter
Obtaining a Real Estate Loan - Chapter Summary
This chapter provides an overview of how to obtain a real estate loan. It also touches on the different acts regulating real estate sales. Lessons include such topics as RESPA and Regulation X, the Truth in Lending Act and Regulation Z, the Equal Credit Opportunity Act and Regulation B, and the S.A.F.E. Mortgage Licensing Act and Regulation G. After completing this chapter, you should be able to:
- Draft financing documents in a real estate sale
- Define good faith estimate
- Explain the types and features of residential real estate loans
- List the different methods and effects of seller financing
- Explain the terminology for real estate finance documents
- Explain lending issues in the real estate market
- Calculate financials related to lending
Use our self-assessment quizzes at the end of each chapter to test your knowledge. If you need more review, use the links from the quiz questions that correspond with points in the video.
1. Financing Documents in a Real Estate Sale
A real estate sale involving financing typically contains at least three main documents; the loan agreement, a promissory note, and a mortgage instrument or deed of trust. In this lesson we will explain the details and purpose of each document.
2. What is a Good Faith Estimate? - Definition & Components
A Good Faith Estimate helps borrowers make informed decisions when applying for a mortgage loan. Learn the ins and outs of a Good Faith Estimate (GFE) and how it works to bring transparency to real estate transactions.
3. Seller Financing: Definition, Method & Effects
In this lesson we will define seller financing and how it works. We will also address some of advantages and disadvantages of this creative financing method.
4. Residential Real Estate Loans: Types & Features
Different types of residential real estate loans involve varying interest rates and repayment schedules. In this lesson, we will explore some common loans and their features. Take a quiz after the lesson to test your knowledge.
5. Terminology for Real Estate Finance Documents
Terminology related to financial documents in real estate can be intimidating. In this lesson, we will define some of the most common financial terms used in real estate and discuss how they impact the cost of borrowing.
6. RESPA & Regulation X: Definition & Overview
Home buyers and anyone seeking real estate financing for residential property are provided with a number of benefits under RESPA and Regulation X. In this lesson we will look at the required disclosures and consumer protections in these laws.
7. Truth in Lending Act & Regulation Z: Definition & Overview
How much does that home mortgage actually cost? Let's take a look at the highlights of the Truth in Lending Act and Regulation Z to see how lenders must inform borrowers about the total costs of borrowing money.
8. The Equal Credit Opportunity Act & Regulation B
Most people need access to credit in order to purchase real estate. In this lesson, you'll learn about the Equal Opportunity Act and Regulation B and how they help ensure that lenders don't unfairly deny credit.
9. The S.A.F.E. Mortgage Licensing Act & Regulation G
The housing crash of 2007 caused the government to enact new laws to stimulate the economy and protect consumers. Learn how the Secure and Fair Mortgage Enforcement Licensing (S.A.F.E.) Act was designed to make obtaining a mortgage more secure.
10. Lending Issues in the Real Estate Market
Since the 2007-2008 housing market collapse, two of the defining issues in real estate lending have been tightening up of lending standards and decreasing interest rates for mortgage loans. In this lesson, we will discuss these issues and how they affect the current housing market.
11. Financial Calculations Related to Lending
Loan shopping involves a number of financial calculations. In this lesson, we will look at some of the common formulas used when talking about qualifying for and paying down mortgages.
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Other chapters within the Illinois Real Estate Broker License Exam: Study Guide course
- Role of Agencies in Real Estate
- Principles of Practicing Real Estate
- Real Estate Ethics & Professional Responsibility
- Overview of Contracts In Real Estate Transactions
- Forms of Property Ownership
- Advanced Property Ownership Issues
- Real Estate Investment & Analysis
- Encumbrances in Real Estate
- Advanced Encumbrances in Real Estate
- Land Use Laws, Regulations & Zoning
- Real Estate Financing
- Real Estate Closing & Settlement Procedures
- Land Descriptions & Surveys
- Property Valuation & Appraisal
- Transfer of Real Property
- Advanced Transfer of Real Property
- Disclosures of Property Conditions
- Fair Housing & Consumer Protection
- Leases & Property Management
- Illinois Real Estate
- Illinois Real Estate Broker License Exam Flashcards