This preview shows page 1. Sign up to view the full content.
Unformatted text preview: e final item regarding the credit history of a buyer: if you are working with a buyer who is moving from another city, you may suggest to that person that they should have their credit transferred from the city they are leaving. There are two good reasons: Dynasty School (www.dynastySchool.com) 13-37 REAL ESTATE FINANCE
1. If the credit is not transferred, it is classified as an out–of–town credit report and normally the credit reporting agencies charge more for such a report. Since the report has to come from outside or from another city, the time to get a report is usually longer, and could possibly slow down loan approval. 2. CHAPTER QUIZ
1. The best way to shop for a loan is to: A. B. C. D. 2. Make trial applications to several lenders Ask detailed questions of the lenders Read the lenders' advertisements carefully These is no need to shop, since government regulations effectively make all lenders' terms the same Income is considered stable by most lenders if A. B. C. D. it has been earned regularly for two years. the applicant has been in the same line of work for several years, even if he or she has been on a new job for one month. the type of occupation would normally warrant it. all of the above apply. 3. Lenders would feel justified in approving a higher loan ratio when there are compensating factors present, such as A. B. C. D. exceptional education and training. Large down payment. substantial net worth. any of the above. 4. The ability or capacity to pay is best defined as the A. applicant's total assets.
Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 13-38 13: QUALIFYING THE BORROWER
B. C. D. 5. borrower's willingness to repay loans. ability to repay debts. current mortgage activity. The process by which a borrower can find out in advance what financing will he available to him or her is called: A. B. C. D. Shopping the loan Pre-qualifying Truth in lending disclosure A conforming loan 6. Qualifying standards for borrowers using conventional loans tha...
View Full Document
This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10