REAL ESTATE FINANCE FINAL EXAM
QUESTIONS AND ANSWERS. VERIFIED
2026.
1. A career in real estate mortgages lending can be exciting and profitable if a person has:
a. energy and is self-motivated
b. a bachelor's degree in real estate
c. experience in accounting field
d. both A & B - ANS A
2. Your BRE License number must be shown on:
a. business cards
b. stationary
c. advertising flyers and other materials
d. All the above - ANS D
3. One of the most important decisions a borrow makes is to select the right:
a. appraiser
b. marketing material
c. loan broker
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,d. REALTOR® - ANS C
4. For Mobile Home loans, in parks, the interest rate is usually ____________ on an FHA loan.
a. 1.0% higher
b. 1.5% higher
c. 2.0% higher
d. none of the above - ANS A
5. A knowing and willful violation of the predatory lending restrictions may result in:
a. a license suspension
b. license being revoked
c. suspension and a fine
d. license being revoked and a fine - ANS A
6. For FHA loans, what is included in the housing expenses?
a. P & I
b. PITI and Mortgage Insurance
c. PITI, HOA, and Mortgage Insurance, if any
d. PITI, HOA, debts and mortgage insurance, if any - ANS C
7. 80% of your FICO credit score is based on:
a. types of credit that are used
b. amount of new credit
c. payment history, amount owed, and length of time the credit has been established
d. all the above - ANS C
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,8. Processing is considered:
a. an unimportant step in the closing of the loan
b. the first step in the closing of the loan
c. the last step in the closing of the loan
d. a vital step in the closing of the loan - ANS D
9. FNMA guidelines for sales comparisons in an appraisal say comparable properties should be
within ____ of the subject property.
a. ½ mile
b. 1 mile
c. 3 miles
d. 5 miles - ANS B
10. To have a binding escrow, which of the following must be true?
a. Only the Seller must execute the written escrow instructions.
b. All parties must execute written escrow instructions and deliver these documents back to the
escrow holder.
c. Only the Buyer/Borrower must execute written escrow instructions and deliver these
documents back to the escrow holder.
d. None of the above is correct. - ANS B
11. Under the rule of "Escrow needs good funds," only the _____________ needs to abide by
this law:
a. principal
b. lender
c. title company
d. all the above - ANS D
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 12. The ___________ has the ultimate responsibility for reviewing the file to clarify potential
discrepancies before the file is funded and forwarded to the investor.
a. broker
b. processor
c. underwriter
d. funder - ANS C
13. In most regions of the United States, all ______________ loans are regularly audited, with
less frequent periodic checks for conventional loans.
a. DVA and FHA
b. DVA, FHA, and Private Party
c. DVA
d. FHA - ANS A
14. The_________ form gives the borrower's permission to the lender to request a copy of the
debtor's tax forms directly from the IRS.
a. 4506
b. 4506-T
c. 5406
d. 5406-T - ANS B
15. The________ form is the borrower's signed authorization for the loan interest tax
deduction.
a. W-2
b. W-4
c. W-9
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS. VERIFIED
2026.
1. A career in real estate mortgages lending can be exciting and profitable if a person has:
a. energy and is self-motivated
b. a bachelor's degree in real estate
c. experience in accounting field
d. both A & B - ANS A
2. Your BRE License number must be shown on:
a. business cards
b. stationary
c. advertising flyers and other materials
d. All the above - ANS D
3. One of the most important decisions a borrow makes is to select the right:
a. appraiser
b. marketing material
c. loan broker
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,d. REALTOR® - ANS C
4. For Mobile Home loans, in parks, the interest rate is usually ____________ on an FHA loan.
a. 1.0% higher
b. 1.5% higher
c. 2.0% higher
d. none of the above - ANS A
5. A knowing and willful violation of the predatory lending restrictions may result in:
a. a license suspension
b. license being revoked
c. suspension and a fine
d. license being revoked and a fine - ANS A
6. For FHA loans, what is included in the housing expenses?
a. P & I
b. PITI and Mortgage Insurance
c. PITI, HOA, and Mortgage Insurance, if any
d. PITI, HOA, debts and mortgage insurance, if any - ANS C
7. 80% of your FICO credit score is based on:
a. types of credit that are used
b. amount of new credit
c. payment history, amount owed, and length of time the credit has been established
d. all the above - ANS C
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,8. Processing is considered:
a. an unimportant step in the closing of the loan
b. the first step in the closing of the loan
c. the last step in the closing of the loan
d. a vital step in the closing of the loan - ANS D
9. FNMA guidelines for sales comparisons in an appraisal say comparable properties should be
within ____ of the subject property.
a. ½ mile
b. 1 mile
c. 3 miles
d. 5 miles - ANS B
10. To have a binding escrow, which of the following must be true?
a. Only the Seller must execute the written escrow instructions.
b. All parties must execute written escrow instructions and deliver these documents back to the
escrow holder.
c. Only the Buyer/Borrower must execute written escrow instructions and deliver these
documents back to the escrow holder.
d. None of the above is correct. - ANS B
11. Under the rule of "Escrow needs good funds," only the _____________ needs to abide by
this law:
a. principal
b. lender
c. title company
d. all the above - ANS D
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 12. The ___________ has the ultimate responsibility for reviewing the file to clarify potential
discrepancies before the file is funded and forwarded to the investor.
a. broker
b. processor
c. underwriter
d. funder - ANS C
13. In most regions of the United States, all ______________ loans are regularly audited, with
less frequent periodic checks for conventional loans.
a. DVA and FHA
b. DVA, FHA, and Private Party
c. DVA
d. FHA - ANS A
14. The_________ form gives the borrower's permission to the lender to request a copy of the
debtor's tax forms directly from the IRS.
a. 4506
b. 4506-T
c. 5406
d. 5406-T - ANS B
15. The________ form is the borrower's signed authorization for the loan interest tax
deduction.
a. W-2
b. W-4
c. W-9
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
