National PSI exam Post Test New Update 2023

National PSI exam Post Test New Update 2023 In the appraisal process, the capitalization rate is used by an appraiser to determine which type of value? A) Future value of any type of property B) Past value of a unique and income-producing property C) Present value of an income-producing property D) Probable value of residential property - Correct Answer-c If the current monthly GRM on a single-family home is 100 with an estimated annual income of $24,000, what is the estimated value of the property? A) $120,000 B) $200,000 C) $240,000 D) $2,400,000 - Correct Answer-b An appraiser is using the sales comparison approach to estimate the value of a residential home. The appraiser will make positive and negative adjustments to the sold comparables for all of the following factors EXCEPT A) square footage of the sold properties. B) lot size and location of each sold comparable in relation to the subject. C) actual replacement and reproduction cost. D) date of sale of each sold comparable. - Correct Answer-c The BEST approach for an appraiser trying to determine market value of a shopping center, apartment building, or office building would be the A) replacement approach to value. B) income approach to value. C) sales comparison approach to value. D) summation approach to value. - Correct Answer-b An active real estate professional must be able to help consumers determine the probable sales price of a real property. A broker's or salesperson's competitive market analysis would be used for all of the following EXCEPT A) setting the loan value. B) determining the listing price. C) assisting sellers and buyers in determining market value. D) estimating the probable sales price. - Correct Answer-a An appraiser has been asked to determine the value of a church. The appraiser has determined the best approach to value for this property is the cost approach. While completing the process of determining the value, the appraiser will consider all of the following EXCEPT A) reproduction cost of the subject property. B) value of the land under the church. C) adjusted square footage of the subject and comparables. D) current depreciation of the property improvements. - Correct AnswerAll of the following are true of FHA and VA loans EXCEPT A) there can be no prepayment penalty. B) the loan is assumable by a qualified buyer. C) the loan-to-value (LTV) ratio may typically be higher than that of conventional loans. D) an appraisal is not required. - Correct Answer-d A state statute has set the maximum interest rate allowed on loans originated within the state. This type of law is known as A) discount points. B) usury law. C) nominal interest rate. D) statute of limitations. - Correct Answer-b A borrower has applied for a loan and has been told the funds will be held because there is a three-day right of rescission. Which of the following loans would have such a three-day right of rescission? A) Home purchase first position B) Home equity loan C) Purchase of a vacation home D) Construction loan for a new home - Correct Answer-b A buyer is getting a new loan with a 95% loan-to-value (LTV) ratio. The full amount of money for the new loan that the lender will be able to provide the buyer will be determined by the A) lower of the sales price or appraised value. B) sales price only. C) appraised value only. D) higher of the sales price or appraised value. - Correct Answer-a A borrower is looking for a loan with a low down payment and does not mind if the loan has a large balloon at payoff. The type of loan that would MOST likely meet this borrower's criteria is A) partially amortized. B) adjustable rate. C) term. D) fully amortized. - Correct Answer-c Which of the following does the federal RESPA law require the lender to provide to all loan applicants within three days of application? A) HUD-1 settlement form B) Good-faith estimate of all closing costs C) Truth-in-lending statement D) Notice of the three-day rescission right - Correct Answer-b A borrower is in default on his home loan and has offered to give the lender a deed in lieu of foreclosure. The lender declined the borrower's offer. This is MOST likely because A) the loan to value is too high. B) there is a junior or secondary lien. C) it will take more time and cost more than foreclosing on the property. D) the lender would not get possession or title upon transfer. - Correct Answer-b Ann has a contract with Ben in which she must perform if Ben decides to go forward. This is what type of contract? A) Unilateral for Ben B) Bilateral for both C) Unilateral for Ann D) Nonbinding - Correct Answer-c A buyer and a seller have been through several counteroffers on a property and finally reached an agreement that was accepted by all parties. During this stage of the process when the contract has yet to be performed, the status of the contract is A) executory. B) executed. C) voidable. D) unilateral. - Correct Answer-a The seller has requested that the earnest money be 5% of the purchase price, but the buyer is concerned about giving such a large amount of money, which might not be returned. The purpose of the buyer's earnest money is to A) act as consideration, which is required in all valid contracts. B) give the seller specific performance as a remedy if the buyer fails to get a loan. C) act as liquidated damages if the buyer defaults without meeting contingency requirements. D) give the seller a reason to allow a financing contingency, which states that if the buyer can't get a loan, the seller will always be able to keep the earnest money. - Correct Answer-c Mutual rescission, when the parties rescind a contract and return all things of value to each party, would likely occur in all of the following situations EXCEPT A) the property being destroyed. B) the inspection finding major heating problems. C) the buyer deciding to buy another home. D) financing not being available. - Correct Answer-c All of the following make a purchase agreement voidable EXCEPT A) the seller being under extreme duress. B) the buyer being a minor. C) the seller misrepresenting the property. D) the buyer signing the contract without reading it. - Correct Answer-d A buyer and a seller enter into a written binding contract in which the seller agrees to sell at a specific price for a set term. Later the buyer decides not to buy the property and the seller has no recourse against the buyer. The contract is... Continues...