Unit 2: The Financing Process

What's another term for front-end ratio?

Housing

Which party to the loan approval process is responsible for providing the Loan Estimate?

Lender

Which of the following may a lender request to verify an applicant's bank deposit information?

Account statement

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

Amount on deposit at his bank

Which of the following will an underwriter evaluate prior to loan funding?

Available funds

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

Buyer

Which of the following is a true statement about the loan approval process?

Buyers shouldn't incur debt or spend money unnecessarily prior to closing.

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

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

Items of value the borrower owns

The Barbers are looking to purchase a new home for their family of four, but they'll need to be approved for a loan. What document will they need to complete to initiate their loan process?

Loan application

Naomi is completing a residential loan application. On the application, she lists her assets and liabilities so that her net worth can be determined. What's net worth?

The difference between a borrower's items of value and obligations

What's the purpose of the financing contingency?

To protect the buyer in case the buyer cannot obtain financing