RE: Lender Loan Process

request for verification of deposit

A _______________ is a form that buyers sign on a lender's behalf so the lender can verify the bank assets the borrower listed on the loan application.

Highest and best use

Appraiser John is determining how a property is being used to determine a more optimal function. What is he determining?

Payments must have been received for at least one year, and must be expected to continue for at least three more years.

In order for the spousal support Kayla receives to be considered in the lender's income evaluation when Kayla applies for a home loan, what must be true?

The market value

John's home is up for sale. He originally bought it five years ago for $300,000. Its current value is $350,000. His real estate agent notified him that a buyer just made an offer on his home for $365,000, which is the price for which other similar homes in the neighborhood are selling, and John accepts. What does the price of $365,000 represent?

Credit report

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?

It must have been received regularly over the last two years.

Normal wages are considered when a lender is evaluating an applicant's income. Which of the following must be true for overtime pay to be considered?

Two months

One of the pieces of information the depository institution provides is the average balance for the applicant's accounts. What time period does this average cover?

Verify it

Sally, a lender with A+ Banking, has received a loan application from a prospective buyer hoping to purchase a four-bedroom house. What does Sally do with the information she's received?

669

Scores below ______ are considered subprime borrowers.

Borrower Lender Settlement agent Underwriter

Several parties are involved in the loan approval process. Who are four of the major players in a typical financing arrangement?

740

The best lending rates go to borrowers with excellent credit (above _____).

Prices are pushed upward.

The fewer properties on the market, the greater the scarcity. What's the effect on prices?

3

The lender provides a Loan Estimate at the time of application or within ______ business days following loan application.

Closing Disclosure

The settlement agent provides the __________ to the parties three days prior to closing.

Installment accounts

These accounts tend to be loans, such as an automobile loan or a mortgage.

Reconciliation

This is when the appraiser analyzes the results obtained by the different approaches to value and arrives at a final estimate of value.

Property dimensions

What information would an appraiser record in the Site section of the Uniform Residential Appraisal Report?

To protect appraisers' ability to assess an accurate value for a property by avoiding outside pressure or influence.

What is the purpose behind Appraiser Independence Requirements?

It provides the lender with an accurate opinion of the property's market value.

What is the purpose of the Uniform Residential Appraisal Report?

Appraiser Independence Requirements (AIR)

What seeks to ensure that lenders select appraisers who are independent of the loan production staff?

Address Loan Purpose Type of occupancy

What three of the below items about property is needed in the application?

Assessed value

What type of value is of interest to taxing authorities?

To assist lenders in determining the marketability and potential sales price for distressed properties

What's one purpose of a BPO?

Utility

Which factor that influences value considers the property's function?

Year built

Which item would an appraiser find in the Improvements section of the Uniform Residential Appraisal Report?

Type of accounts

Which of the following factors carries the least weight when calculating a credit score?

Population size

Which of the following is a piece of general data an appraiser may gather?

Insured value

Which of the following is the cost of replacing a building in the case of total loss?

Evaluation

is a study of a property, possibly for land use or marketability.

The Uniform Residential Appraisal Report

is used by appraisers to demonstrate their approach to value, and justify their opinion of value. It contains data on cost, comparables, and (as applicable) income for the subject property.

Revolving accounts

tend to be credit cards or lines of credit (like a home equity line of credit).

Be knowledgeable about the global market rates

Which of these appraiser requirements does AIR NOT specify?

Four-unit residence being purchased with a conventional loan

Which of these transactions must comply with Appraiser Independence Requirements?

Buyer

Which party to the loan approval process is responsible for completing a loan application and supplying supporting documentation?

670 to 739

Which range of credit scores represents the average score for Americans overall?

Principle of competition

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?

Borrower purchasing the property

Completing a residential loan application requires providing information about the loan being requested, the property being purchased, and the ________.

740-799

Consumers in the _______ range have an above-average credit score. They tend to qualify for better interest rates than those in the "acceptable" category.