The Loan Underwriting Process

Curtis is completing a residential loan application. Which of the following would he include in the assets section?

Amount on deposit at his bank

Sara's mortgage lender has denied her loan. What happens now?

Sara can apply with a different lender to see if she qualifies

How is pre-approval for a loan different from pre-qualification?

Sellers will be more confident in the buyer's ability to obtain financing if the buyers have a pre-approval instead of pre-qualification

An investor is thinking about buying a $500,000 house to use as a rental property. She has $100,000 saved up for a down payment and will mortgage the remaining $400,000. The annual cash flow is projected to be $250,000. What is the potential return on investment?

25%

Which of the following is a downside of automated underwriting?

Allowances for special circumstance can't be made

When a borrower is competing a loan application, items of value the borrower owns are listed in the ___section.

Assets

The Truth in Lending Act requires lenders to make certain___ to consumers.

Disclosures

Brian is competing a residential loan application. On the application, he lists his assets. What are assets?

Items of value the borrower owns

Marvin has been wooing a homeowner in his neighborhood for months, trying to get a listing agreement. When the homeowner finally decided to list the property, he does so with another broker. Is this tortious interference?

No, because no listing agreement was in place

Which of the following is a benefit of automated underwriting?

There is no chance of personal prejudice entering into the decision.