This preview shows page 1. Sign up to view the full content.
Unformatted text preview: pt A. B. C. D. legal descriptions. restrictions. easements. encroachments. 6. In reviewing the data collected for the income approach, the appraiser should check the mathematical accuracy of:
Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 12-28 12: QUALIFYING THE PROPERTY
A. B. C. D. 7. Gross income estimate Allowance for vacancy and collection losses Operating expense estimate All of the above What is the most detailed and reliable method for estimating construction costs? A. B. C. D. Unit-in-place method Quantity survey method Asking the contractor None of the above 8. The cost approach requires an estimate of the: A. B. C. D. Land value and Site improvements and building costs Depreciation allowance All of the above 9. When using the Income Approach, the appraiser assumes that: A. B. C. D. Value is a function of income Buyers estimate the duration of income when purchasing Income property Future income is less valuable than present income All of the above 10. Operating expenses of an apartment building may include all of the following, except: A. B. C. D. Salaries Electricity Management fees Interest Answer Key: 1–D, 2–A, 3–A, 4–C, 5–B, 6–D, 7–B, 8–D, 9–A, 10–D
Dynasty School (www.dynastySchool.com) 12-29 REAL ESTATE FINANCE 12-30 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 13: QUALIFYING THE BORROWER CHAPTER 13: QUALIFYING THE BORROWER PREVIEW
The second step in undertaking the risk (rendering the underwriting decision) of lending money on the basis of residential real estate collateral is analyzing the borrower’s qualification. In consideration of the varying guidelines established not only by the secondary market, but FHA, VA, and the California Housing Agency in addition to the financial institution’s lending policies. The determination of what guidelines apply is dependent upon the type of financing sought by the borrower. Both information required for loan qualificat...
View Full Document
- Spring '10