CA Real Estate Finance Course » 2021 » Sec 4 Unit 6 Exam

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Question #1
Natalie and Sam are reviewing the Loan Estimate form to ensure the date, their names, the property address, and sales price is listed accurately. Additionally, the information provided about their loan term, purpose, product, type, and rate lock should ______.
A.   Include options for Natalie and Sam to select from
B.   Match what the lender discussed with both of them
C.   Be blank
D.   Include a checkbox for Natalie and Sam to indicate acceptance of the loan terms
Question #2
On the Loan Estimate under “Loan Costs,” the points, application fee, and underwriting fee are considered ______.
A.   Service charges
B.   Transaction charges
C.   Origination charges
D.   Closing charges
Question #3
Betty is purchasing a home and has received Loan Estimates from three lenders. As she compares the terms of the loans being offered, where can she find the section that allows her to make comparisons between loans with different interest rates?
A.   Page two
B.   Page one
C.   Page three
D.   Page four
Question #4
Lewis is reviewing his Loan Estimate and notices under “Other Costs” that there are items listed that don’t include an amount. What does this mean?
A.   The amount for that item is included in a total at the bottom of the page.
B.   The lender hasn't yet determined the amount to charge for that line item.
C.   The item is likely a mistake, and Lewis should find a different lender.
D.   Lewis should ask his lender about it.
Question #5
Under the "Projected Payments" section of the Loan Estimate, the consumer can view what is included in the monthly payment. Which of the following may be part of the total payment other than the principal and interest?
A.   Prepayment penalties
B.   Closing costs
C.   Loan term
D.   Mortgage insurance
Question #6
Kendra has applied for a mortgage from Best Bank. When is Best Bank required to provide Kendra with a Loan Estimate?
A.   24 hours
B.   Three business days
C.   Five business days
D.   10 business days
Question #7
Borrowers Ava and Liam are expecting their first child and want to be sure they're both comfortable with the monthly payments they'll be responsible for in the new house. Under the "Projected Payments" section of their Loan Estimate, Ava and Liam can review ______.
A.   The estimated amount of cash they will need to bring to closing
B.   A table describing the potential changes in payments over the life of the loan if the interest rate is adjustable
C.   An amortization table for the expected life of the loan, if using a fixed rate
D.   The estimated breakdown of each monthly mortgage payment, including any items that will be included in escrow
Question #8
The section on the Loan Estimate called “Services You Cannot Shop For” includes fees for services ______.
A.   Performed by a third party that the lender selects
B.   A third party mandated by the government performs
C.   The lender performs
D.   Performed by a third party that the borrower selects

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