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California Real Estate FINANCING Flashcards Questions And Answers With Verified Solutions 100% Correct!!!
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California Real Estate FINANCING Flashcards Questions And Answers With Verified Solutions 100% Correct!!!

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  • October 9, 2024
  • 59
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • california real estate financing flashcards quest
  • if there is a dispute between the buyer and seller
  • lots of things can be prorated in real estate duri
  • in real estate finance the term beneficiary stat

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  • California Real Estate
  • California Real Estate

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California Real Estate FINANCING
Flashcards Questions And Answers With
Verified Solutions 100% Correct!!!
If there is a dispute between the buyer and seller, under what circumstance can an
escrow agent release funds?

a. all of these
b. Upon receiving written instructions signed by the buyer and seller
c. Upon receiving a court ruling
d. Upon receiving an arbitrator award - ANSWER✔✔a. all of these

Lots of things can be prorated in real estate during the escrow process. Which of
the following would be something buyers and sellers would agree to prorate during
the sale process using escrow?

a. fees for title and escrow
b. rent
c. the cost to prepare the country transfer tax
d. termite and dry rot work that needs to be completed - ANSWER✔✔b. rent


* The seller would be entitled to any rent from the property up to the close of
escrow; the buyer would be entitled to the rent thereafter.

In real estate finance, the term "beneficiary statement":

a. is made by the title company and refers to the value of the title policy.
b. refers to the property owner stating the benefits of owning the property
c. refers to the current balance due to the lender and the pay off amount.
d. defines who will get the property in the event that the owner dies -
ANSWER✔✔c. refers to the current balance due to the lender and the pay off
amount.

When the real estate market changes from a buyer's market to a seller's market,
what could be expected in the real estate industry?

a. Home prices increase due to a surplus of inventory

,b. Home prices will decrease due to high demand of property
c. Home construction would decrease
d. Home prices will increase due to the lack of inventory - ANSWER✔✔d. Home
prices will increase due to the lack of inventory


* In a sellers' market, property demand is higher than the supply of inventory that
is available. Therefore home prices will increase.

Which of the following would pay a premium for mutual mortgage insurance?

a. homeowner who has conventional loan from a life insurance company
b. homeowner who assumed a FHA loan
c. Cal-Vet loan
d. a homeowner who insures their personal property with insurance -
ANSWER✔✔b. homeowner who assumed a FHA loan


* A buyer who uses a FHA loan will pay .5% per year based on the amount of the
loan for an insurance premium.

The supply of real estate loans tends to increase by all of the following, except:

a. deposits into saving accounts go up
b. national income increases
c. increased demand for liquid assets
d. increased desire to provide for retirement - ANSWER✔✔c. increased demand
for liquid assets


* Real estate loans are not as liquid as other assets or investments. Loan funds are
increased by the other three examples, not by an increased demand for more liquid
assets or investments.

Which of the following is exempt from the Federal Truth-in-Lending Act?:

a. A VA loan from a savings and loan
b. A loan from a credit union for improvements to the home
c. An agricultural and farming loan from a bank

,d. A signature loan without any security from the borrower from a financing
company - ANSWER✔✔c. An agricultural and farming loan from a bank

Of the following types of loan, which would qualify for FHA insurance but not a
VA loan guarantee?:

a. A small business loan
b. A loan to buy an 8 unit investment complex
c. A loan to buy an avocado farm
d. A loan to buy a 1-4-unit residential income property - ANSWER✔✔d. A loan to
buy a 1-4-unit residential income property


* FHA loans allow for the purchase of 1-4 unit income property while a VA loan
guarantee does not.

When a buyer is financing a loan for new construction, when will the lender
release the final payment to the builder?

a. When the completion of work has been recorded
b. When the lien period has expired
c. When the work has started
d. When the work has been completed - ANSWER✔✔b. When the lien period has
expired


* Final payment is usually held back until the lien period has expired. This is done
to make certain that there will not be any mechanics liens filed against the
property.

What is a "FICO" score typically used for?:

a. Supplies the credit history of the prospective buyer
b. Helps to decide which government program someone can qualify for
c. Determines if private mortgage insurance will be needed
d. None of these - ANSWER✔✔a. Supplies the credit history of the prospective
buyer

When does the time for repayment start for a construction loan?

, a. when money is wired to escrow
b. when the purchase contract was signed
c. when escrow closes
d. from the date of the note - ANSWER✔✔d. from the date of the note


* The date of the note determines the maturity date of the construction loan.

Of the following, which would be a recurring cost?

a. impound account items
b. escrow fees
c. title insurance premiums
d. mailing of documents - ANSWER✔✔a. impound account items


* Impound account items, such as property taxes and homeowners insurance, are
normally paid monthly with the payment of principal and interest through the life
of the loan.

When real property is sold, escrow will be used in order to:

a. make sure the real estate agent gets paid
b. be a 3rd party witness for the transaction
c. make sure laws are followed
d. make sure all of the conditions and terms are met before the transaction closes -
ANSWER✔✔d. make sure all of the conditions and terms are met before the
transaction closes


* Escrow makes certain that all of the details of the transaction are complete before
the deal closes.

What is the lender's goal when determining whether or not to provide a real estate
loan?:

a. To make the most money possible from each person

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