AYPO REAL ESTATE FINANCE EXAM 2025
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS AND
SOLUTIONS |ALREADY GRADED
A+|NEWEST|LATEST UPDATE|GUARANTEED
PASS
TREC law requires that every buyer be made aware
That the sales contract states the buyer should purchase a title insurance policy or title abstract
Most lenders will not approve a buyer if home ownership cost are projected to make up more
than ____ of their gross monthly income
28%
Which of these is not a document critical to the loan application and funding process?
All of these are critical to the process
Fannie Mae 1003 form is also known by which of these names
Uniform residential loan application
A preapproval letter generally states that the lender has reviewed the buyers information,
including which of the following?
Credit report, income required, and available cash to close
Which of these methods is focused primarily on investment property?
Income approach
Which of these is not an accurate appraisal method?
Automated Valuation Model
The closing disclosure must be given to the borrower no later than which of the following
sessions?
At least three days before the consummation of the loan
1|Page
, A mutual agreement by the parties is for the borrower to voluntarily deed, the property back to
the lender is referred to as which of the following?
deed in lieu of foreclosure
If a bank recovers $200,000 from a foreclosure sale on a mortgage owing $250,000, but the
borrower approves to the court that the fair market value is $225,000, the deficiency judgment
should be
$25,000
In a non-recourse loan
The lender's only remedy is to repossess the property being financed or used as collateral
Acceleration clauses are used for which of the following purposes
To call for full repayment based on default / failure to pay on the obligation
For property owners, facing foreclosure, refinancing is rarely an option if
they have little to no equity in the property
When in default on a mortgage, which of these is not a possible option for the buyer to avoid
foreclosure?
A principal reduction agreement
What are the most common forms of home loans?
Contract for land, deed of trust, and mortgage
Which of these is best described as: a home loan using a third-party trustee to hold the deed?
Deed for Trust
If she's already getting a mortgage or deed of trust, why does she need a promissory note as
well?
The promissory note is the piece that actually obligates the borrower to pay back the loan
Which of these is not required by Texas laws on promissory notes?
There is a maximum loan amount of $417,000
What is required by Texas laws on promissory notes
2|Page
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|FREQUENTLY TESTED QUESTIONS AND
SOLUTIONS |ALREADY GRADED
A+|NEWEST|LATEST UPDATE|GUARANTEED
PASS
TREC law requires that every buyer be made aware
That the sales contract states the buyer should purchase a title insurance policy or title abstract
Most lenders will not approve a buyer if home ownership cost are projected to make up more
than ____ of their gross monthly income
28%
Which of these is not a document critical to the loan application and funding process?
All of these are critical to the process
Fannie Mae 1003 form is also known by which of these names
Uniform residential loan application
A preapproval letter generally states that the lender has reviewed the buyers information,
including which of the following?
Credit report, income required, and available cash to close
Which of these methods is focused primarily on investment property?
Income approach
Which of these is not an accurate appraisal method?
Automated Valuation Model
The closing disclosure must be given to the borrower no later than which of the following
sessions?
At least three days before the consummation of the loan
1|Page
, A mutual agreement by the parties is for the borrower to voluntarily deed, the property back to
the lender is referred to as which of the following?
deed in lieu of foreclosure
If a bank recovers $200,000 from a foreclosure sale on a mortgage owing $250,000, but the
borrower approves to the court that the fair market value is $225,000, the deficiency judgment
should be
$25,000
In a non-recourse loan
The lender's only remedy is to repossess the property being financed or used as collateral
Acceleration clauses are used for which of the following purposes
To call for full repayment based on default / failure to pay on the obligation
For property owners, facing foreclosure, refinancing is rarely an option if
they have little to no equity in the property
When in default on a mortgage, which of these is not a possible option for the buyer to avoid
foreclosure?
A principal reduction agreement
What are the most common forms of home loans?
Contract for land, deed of trust, and mortgage
Which of these is best described as: a home loan using a third-party trustee to hold the deed?
Deed for Trust
If she's already getting a mortgage or deed of trust, why does she need a promissory note as
well?
The promissory note is the piece that actually obligates the borrower to pay back the loan
Which of these is not required by Texas laws on promissory notes?
There is a maximum loan amount of $417,000
What is required by Texas laws on promissory notes
2|Page
