Texas Real Estate Finance - Chapter 9

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Fair market value

An appraisal determines an estimate of...? Value-in-use Assessed value Tax value Fair market value

All of the above

The Uniform Residential Loan Application includes which of the following information...? Legal description of the property Names of the borrower and co-borrower The requested loan amount All of the above

Depreciation

The ability to deduct expenses on improvements made to income producing property is known as...? Appreciation Depreciation Buydown Write-off

All of the above

The objective of the Uniform Residential Loan Application is to identify which of the following...? The property The borrower The loan amount requested by the borrower All of the above

Appraisal

This is a written statement, independently and impartially prepared by a qualified appraiser setting forth an opinion in a transaction, as to the market value of an adequately described property, as of a specific date...? Appraisal Comparative Market Analysis Pro-forma Statement of value

Cost approach

This is an analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land...? Sales comparison approach Income capitalization approach Cost approach CMA

Appraisal

An opinion of value is known as a/an...? P&L Statement Appraisal Market analysis Statement of value

Net worth

Assets minus liabilities equals an individual's...? Income Net worth Gross worth Balance

Positive net worth

If an individual's assets exceed their liabilities, they are said to have a...? Positive net worth Negative net worth Positive credit score Positive income

Liabilities

Monies that are owed are considered...? Assets Taxes Liabilities Credits

Sales comparison approach

One of the three major valuation methods, which compares a subject property's characteristics with those of comparable properties which have recently sold in similar transactions is known as the...? Cost approach Sales comparison approach Income capitalization approach CMA

Sales comparison approach

Residential properties are typically valued using which appraisal method...? Sales comparison approach Income capitalization approach Cost approach CMA

Asset

Something that has value is known as a/an...? Asset Liability Debit Tax

Proration

The division of certain settlement costs between a buyer and seller is known as...? Payout Proration Buydown Settlement disclosure

Capitalization rate

This is the rate of interest which is considered a reasonable return on the investment, and used in the process of determining value based upon net income...? Capitalization rate Gross rent multiplier Yield IRR

Clouded title

Title that is encumbered or burdened with defects is known as...? Partial title Inferior title Clouded title Marketable title

Marketable title

Title which a reasonable purchaser, informed as to the facts and their legal importance and acting with reasonable care, would be willing and ought to accept is known as...? Recorded title Clouded title Marketable title Unmarketable title

Cash deposits

Under the Uniform Residential Loan Application, which of the following is considered an asset for the borrower...? Cash deposits Homeowners insurance Credit cards All of the above

Marketable title

A buyer should receive a/an .............prior to closing on a property? Clouded title Unmarketable title Marketable title Recorded title

Survey

A document which precisely shows the property lines, and size and location of improvements on a particular property, is known as a...? Roof plan RCP Topography plan Survey

Chain of title

A history of conveyances and encumbrances affecting the title of a property, which is used to determine how title came to be vested in current owner, is known as...? Chain of title Abstract of title Title history Clouded title

Purchase price

A property's NOI divided by the capitalization rate, equals the...? Gross rent multiplier IRR Purchase price Yield

Abstract of title

A summary or digest of all transfers, conveyances, legal proceedings, and any other facts relied on as evidence of title, showing continuity of ownership, together with any other elements of record which may impair title, is known as...? Abstract of title Chain of title Title history Clouded title

Negative adjustment

According to the sales comparison approach, if the comparable sale #1 includes a garage, and the subject property does not, what type of adjustment needs to be made...? Even adjustment Negative adjustment Positive adjustment Minute adjustment

Opinion of title

An attorney may issue which of the following...? Opinion of title All of the above Survey Chain of title

Improvements

An exterior description of the subject property is listed under what section of the Uniform Residential Appraisal Report...? Subject Neighborhood Improvements Site

Title insurance

Insurance to protect a real property owner or lender up to a specified amount against certain types of loss is known as...? Homeowners insurance HO-1 insurance policy Title insurance HO-3 insurance policy

Income capitalization approach

One of the three major valuation methods, which determines the value of a property by applying a capitalization rate to a property's net operating income is known as the...? Sales comparison approach Income capitalization approach Cost approach CMA

Dimensions of the subject property

The 'Site' section of the Uniform Residential Appraisal Report includes which of the following information...? Dimensions of the subject property Age of subject property Neighborhood boundaries Improvements on the property

Legal description of the property

The 'Subject' section of the Uniform Residential Appraisal Report includes which of the following information...? Improvements on the property Legal description of the property Neighborhood characteristics Zoning lot size

T (True)

The seller is primarily responsible for paying the broker's commission at closing...? T (True) F (False)

Value-in-use

The value derived from the use of something is known as...? Inherent value Utility value Value-in-exchange Value-in-use

Marital status

What information about the borrower must be included on the Uniform Residential Loan Application...? National origin Religion Marital status Race

43 percent (%)

What is the maximum back-end debt-to-income ratio on an FHA loan...? 23 percent (%) 16 percent (%) 43 percent (%) 52 percent (%)

30 years

What is the most commonly used term on residential mortgages...? 7 years 10 years 20 years 30 years

All of the above

When qualifying a borrower, the lender needs to verify which of the following...? The borrower's employment status The borrower's income The borrower's assets and liabilities All of the above

All of the above

When qualifying a borrower, the lender will do which of the following...? Determine the ability of the borrower to repay Estimate the value of the property being used as collateral Research and analyze the marketability of title All of the above

All of the above

Which of the following are included as the buyer's charge on a closing settlement statement...? Appraisal fees Credit reports Title insurance All of the above

Appraisal fees

Which of the following are included as the buyer's charge on a closing settlement statement...? Broker commissions Appraisal fees Recording fees All of the above

All of the above

Which of the following are included as the seller's charge on a closing settlement statement...? Broker commissions Transfer taxes Recording fees All of the above

All of the above

Which of the following is a major valuation method used by appraisers...? Cost approach Sales comparison approach All of the above Income capitalization approach

All of the above

Which of the following is an example of a credit bureau...? Equifax Experian TransUnion All of the above

Outstanding loan balance

Which of the following is an example of a liability...? Stocks Real estate Bonds Outstanding loan balance

All of the above

Which of the following is an example of a long-term liability...? Liens Child support Taxes All of the above

Uniform Residential Loan Application

Which of the following is used at the start of the loan application process...? Residential Loan Form Primary Loan Application Universal Loan Form Uniform Residential Loan Application


Kaugnay na mga set ng pag-aaral

Cervical Spine Biomechanics and Manual Therapy

View Set

ACCTG 101 - Chapter 7 - Smart learning

View Set

Karch Focus on Pharmacology Chapter 9- Antibiotics

View Set

Chapter 1 - The Principles and Practice of Economics

View Set

Area, Volume, and Surface Area Formulas

View Set

"there, there" test english II kotty

View Set

Intermediate Financial Accounting 2 Exam 2 Review File

View Set

Data Modeling Chapter 2: Data Models

View Set

Big-O Algorithms Time Complexity

View Set