Section 10 (Part I)
What is the formula for calculating the total debt ratio?
(Monthly debt payments ÷ gross monthly income) × 100
A CMA or a BPO is an example of ______.
An informal estimate of market value
Which consumer inquiry has Zachary initiated that may appear on a credit report?
Application for a loan
Completing a residential loan application requires providing information about the loan being requested, the property being purchased, and the ________.
Borrower purchasing the property
Which party to the loan approval process is responsible for completing a loan application and supplying supporting documentation?
Buyer
_______ are part of the loan-approval process and are responsible for completing a loan application and supplying supporting documentation.
Buyers
Biff is completing a residential loan application. Which of the following would he include in the liabilities section?
Car loan
What information does the appraiser complete for the section used for the income approach?
Gross rent multiplier
From a lender's perspective, what does a credit score on the low end indicate?
Higher risk
Appraiser Jamie is looking past how a property is being used to determine a higher value. What is Jamie determining?
Highest and best use
What type of value may consumers be interested in if they are looking for the potential rate of return?
Investment value
Payment history, age of accounts, credit usage rate, and inquiries are factors considered in calculating a credit score. Which of the following is also considered?
Length of credit history
Julia is trying to buy a house and is going through the loan application process. As part of the process, her credit score was run. Which of these issues would harm her score?
Missed payments
Which is the most important factor used to determine a credit score?
Payment history
Which of the following factors carries the heaviest weight when calculating a credit score?
Payment history
Your client, Skip, is an investor who's just opened a thriving new sporting goods store in a location outside the city. What principle of value indicates that his thriving business will attract others to engage in similar activity in the same area, driving down his profits?
Principle of competition
Which of the following is a piece of specific data an appraiser may gather?
Property lot size
When completing a loan application, the applicant must list their assets. Which of these is considered an asset?
Savings account
Tara has made an offer on a home and is completing the loan application. Which of the following is an asset that she'll list?
Savings account with a balance
Jim is self-employed. He and his wife want to obtain a home loan. Which of the following statements is true?
They'll need to provide additional proof of income.
Which of the following provides the lender with an accurate opinion of a property's market value?
Uniform Residential Appraisal Report
Which party to the loan approval process evaluates the loan application, the supporting documentation and data, and the property appraisal in order to make an approval recommendation?
Underwriter
Kelly is reviewing Steve's loan application. She wants to verify that he has a solid history of paying obligations on time. What should she request to do this?
Credit report
Which of the following characteristics would the appraiser find in the Neighborhood section of the URAR?
Property value trends Property value trends is a neighborhood appraisal factor. The appraiser will also note how built up the neighborhood is and land use for the area.
