REE3043 PRACTICE TEST QUESTIONS
WITH REVISED ANSWERS – UPDATED!!
Property manager top designation ____________ - Answer-certified property manager
CPM
Administrative tasks- collecting rents, prepare monthly reports (who paid who didn't,
what isn't) and record keeping - Answer-property manager tasks
need to know the marketing advantages/disadvantage of property
have low cost and low maintenance amenities that competitors dont have - Answer-
marketing strategy
______________ want similar type of tenants: families w, children. seniors, college
students etc - Answer-tenant selection
_______________________________ may want to add amenities, make sure
everything looks good and is kept up to date - Answer-physical management of facilities
___________________ outlines the authority given to the property manager by the
owner - Answer-management agreement
Sign leases
collect rents/ make deposits
pay bills- up to a certain amount
bond an employee
compensation - Answer-property manager authority
Bond an employee - Answer-insurance policy in case of theft by employee
Compensation - Answer-gets a percentage of the gross revenues (have no control over
revenues, ranging from 2-5%)
how long do you plan to stay in home
affordability
interest rates
alternatives used of down payments funds
home prices going up or down
tax consequences of home ownership - Answer-factors of home vs. renting
, _____________ how much less federal income tax will you pay b/c homeowner tax
deductible - Answer-tax effect
If you sale a home and use a salesperson/broker, you will pay a sales commission of
6.0% your home must have appreciated by at least 6% to break even - Answer-true
Qualifying for a mortgage, you must qualify for both ratios - Answer-mortgage debt ratio
.28
total debt ratio .36
Gross salary: 50,000
Mortgage debt: .28
Total= 14,000
divide by 12 to get monthly
Results in 1,167 a month ( the bank doesn't want cost of housing to exceed this ) -
Answer-Mortgage Debt Ratio
Gross salary: 50,000
Mortgage debt : .36
Total : 18,000
Divide by 12 to get monthly
Gives you 1,500 a month. The bank does not want you total debt ( including the cost of
housing ) to be more than 1,500 a month. - Answer-Total debt ratio
- school's
- property tax rate
- driving time to work
- crime in the area
- recreational amenities - Answer-Things to consider about choosing an area in which to
buy a home.
- don't make late payments
- pay your creditors ( don't go more than 50% over your credit limit )
- build your credit
- if you are adding a lot of credit at the same time
- they look at what percentage of credit you're using.
- what is the mix of your credit? School loans, credit cards, auto loans, etc. - Answer-
Components of a FICO score-
This is the company to whom you send your mortgage payments to. - Answer-Servicing
a loan
The lender that takes out a insurance policy against the mortgage in case the borrower
defaults. - Answer-PMI - Private Mortgage Insurance
WITH REVISED ANSWERS – UPDATED!!
Property manager top designation ____________ - Answer-certified property manager
CPM
Administrative tasks- collecting rents, prepare monthly reports (who paid who didn't,
what isn't) and record keeping - Answer-property manager tasks
need to know the marketing advantages/disadvantage of property
have low cost and low maintenance amenities that competitors dont have - Answer-
marketing strategy
______________ want similar type of tenants: families w, children. seniors, college
students etc - Answer-tenant selection
_______________________________ may want to add amenities, make sure
everything looks good and is kept up to date - Answer-physical management of facilities
___________________ outlines the authority given to the property manager by the
owner - Answer-management agreement
Sign leases
collect rents/ make deposits
pay bills- up to a certain amount
bond an employee
compensation - Answer-property manager authority
Bond an employee - Answer-insurance policy in case of theft by employee
Compensation - Answer-gets a percentage of the gross revenues (have no control over
revenues, ranging from 2-5%)
how long do you plan to stay in home
affordability
interest rates
alternatives used of down payments funds
home prices going up or down
tax consequences of home ownership - Answer-factors of home vs. renting
, _____________ how much less federal income tax will you pay b/c homeowner tax
deductible - Answer-tax effect
If you sale a home and use a salesperson/broker, you will pay a sales commission of
6.0% your home must have appreciated by at least 6% to break even - Answer-true
Qualifying for a mortgage, you must qualify for both ratios - Answer-mortgage debt ratio
.28
total debt ratio .36
Gross salary: 50,000
Mortgage debt: .28
Total= 14,000
divide by 12 to get monthly
Results in 1,167 a month ( the bank doesn't want cost of housing to exceed this ) -
Answer-Mortgage Debt Ratio
Gross salary: 50,000
Mortgage debt : .36
Total : 18,000
Divide by 12 to get monthly
Gives you 1,500 a month. The bank does not want you total debt ( including the cost of
housing ) to be more than 1,500 a month. - Answer-Total debt ratio
- school's
- property tax rate
- driving time to work
- crime in the area
- recreational amenities - Answer-Things to consider about choosing an area in which to
buy a home.
- don't make late payments
- pay your creditors ( don't go more than 50% over your credit limit )
- build your credit
- if you are adding a lot of credit at the same time
- they look at what percentage of credit you're using.
- what is the mix of your credit? School loans, credit cards, auto loans, etc. - Answer-
Components of a FICO score-
This is the company to whom you send your mortgage payments to. - Answer-Servicing
a loan
The lender that takes out a insurance policy against the mortgage in case the borrower
defaults. - Answer-PMI - Private Mortgage Insurance
