About This Chapter
Real Estate Financing - Chapter Summary
VA, FHA, fixed rate, balloon, conventional, 5/1 ARM. Confused yet? You won't be once you have completed this chapter on real estate financing. You'll explore financing options; learn the terminology, procedures and the paperwork involved; and meet Fannie Mae, Ginnie Mae, and Freddie Mac along the way (no, they are not the new neighbors!). Take a deep breath, get comfortable, and jump right in. Choose from topics including:
- The personnel involved in financing a real estate transaction
- Primary vs secondary mortgage markets
- Underwriting and escrow
- Financing options: FHA, VA, conventional, seller, and more
- Financing documents and the good faith estimate
- Ginnie Mae, Fannie Mae, and Freddie Mac
- Learning the terminology
- Regulations and acts governing real estate financing
- Common financing calculations
Be patient and take your time working through this chapter. There is a lot of material here to cover, but don't worry, our instructors will make it easy to understand, and the video lessons will help you remember all the details. And remember, each of the lessons is designed to stand alone, so you can start with any of the lessons and complete them in any order you like. Read the transcripts or watch the videos. Take notes, draw diagrams, make lists. Use the resources in the lessons in whatever way works best for you. And don't hesitate to ask questions. That's why the button is there! Keep track of your progress on your Dashboard, and don't forget about the short quiz found in each of the lessons. Use them to reinforce key concepts as you complete the lessons, or revisit them periodically to keep the content fresh in your mind as you work through the chapter.
1. Professionals Involved in Financing Real Estate Purchases
In this lesson we will identify the different professionals involved in real estate financing. We will define the role of mortgage originators, underwriters, appraisers, and title agents.
2. Primary vs. Secondary Mortgage Markets: Definition & Differences
Mortgage markets are not only important for borrowers and lenders, but they also play an important role in the world of investment. In this lesson, you'll learn about the primary and secondary mortgage markets in the United States.
3. Loan Underwriting: Definition, Process & Purpose
In this lesson we will look at the definition of loan underwriting. We will also explore how and why lenders use the process before extending credit to buyers in the form of a mortgage.
4. Conventional Financing: Definition & Requirements
In this lesson we will define and describe the general requirements of conventional financing. We will also explore the concepts and application of loan-to-value ratios as well as private mortgage insurance.
5. What is FHA Financing? - Definition & Requirements
Homebuyers short on cash with a few dings on their credit report may qualify for FHA financing. In this lesson, you'll learn about FHA financing and its requirements. You'll also have a chance to test your knowledge with a short quiz.
6. VA Financing: Eligibility & Requirements
The VA home loan is a financing option available to those who serve or have served in the United States Armed Forces. This lesson outlines who is eligible for a Department of Veterans Affairs mortgage and the VA's unique requirements.
7. What is an Escrow Account? - Definition & Rules
Escrow is used in real estate sales transactions and in the servicing of mortgage loans every day. In this lesson, you'll learn what escrow is, who's involved and how escrow accounts are used in real estate transactions.
8. Underwriting in Real Estate: Definition & Requirements
Underwriters examine and evaluate the risk of offering a mortgage applicant a loan before the lender approves funding. They base their decision on a comprehensive review of the borrower's finances and specific details of the mortgaged property.
9. The Role of Fannie Mae in Real Estate Financing
In this lesson, you will learn about the history and structure of Fannie Mae. We will also cover the role Fannie Mae plays in the field of real estate financing. A short quiz follows.
10. The Role of Freddie Mac in Real Estate Financing
One of the biggest players in the secondary mortgage market is Freddie Mac. In this lesson, you'll learn about the history of Freddie Mac and its role in the mortgage market. A short quiz follows the lesson.
11. The Role of Ginnie Mae in Real Estate Financing
This lesson covers the history, structure, and role in real estate financing of Ginnie Mae, or the Government National Mortgage Association. We will discuss how Ginnie Mae affects investors and homebuyers.
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Other chapters within the Real Estate Exam Prep course
- Forms of Property Ownership
- Advanced Property Ownership Issues
- Encumbrances in Real Estate
- Advanced Encumbrances in Real Estate
- Land Use Laws, Regulations & Zoning
- Land Descriptions & Surveys
- Transfer of Real Property
- Advanced Transfer of Real Property
- Fair Housing & Consumer Protection
- Contracts In Real Estate Transactions
- Role of Agencies in Real Estate
- Property Valuation & Appraisal
- Real Estate Investment & Analysis
- Disclosures of Property Conditions
- Obtaining a Real Estate Loan
- Real Estate Closing & Settlement Procedures
- Leases & Property Management
- Principles of Practicing Real Estate
- Real Estate Ethics & Professional Responsibility
- Real Estate Exam Prep Flashcards