Kansas Real Estate Test

In deciding on whether to make a residential home loan, a lender would normally consider the borrower's - Answer- debt to income ratio A property sold for $200,000 with an 80% loan to value ratio. The lender charged 1 discount point in connection with the loan. What was the amount for the discount points? - Answer- $1,600 A buyer is inquiring as to what the principal and interest payment will be on a property that is being purchased. Where would be the best place for the buyer to obtain this information? - Answer- Look on the Closing Disclosure (CD) A seller and buyer agreed on the sale and purchase of a piece of real estate with closing to take place in 30 days. Prior to closing, the lender informed the buyer that the APR was going to change by 0.3%. Which of the following statements would be true regarding this situation under TRID guidelines? - Answer- A revised Closing Disclosure would need to be issued regarding the change in APR What is the purpose of a broker preparing a closing statement for the buyer and seller at closing? - Answer- To provide the buyer and seller with an accounting of all funds related to the transaction A person owned a property next to a stream. The owner's rights to use the stream are referred to as: - Answer- Riparian Which of the following would best describe the term equity of redemption? - Answer- The right of a debtor to receive property back by paying the debts and any other related costs. A seller and buyer agreed on the sale and purchase of a house. As part of the agreement, the buyer was to take over liability for the seller's existing loan as well as the payments. This type of arrangement would be called a(n): - Answer- loan assumption A builder obtains a blanket mortgage to build homes in a new subdivision. The builder wants to sell off just one of the newly built homes. Regarding the sale of the one property, which of the following would be outside the parameters of the blanket mortgage? - Answer- The one property can be released from the blanket mortgage if a set amount of money is paid down on the loan Which of the following would be an example of wetlands? - Answer- Mossy vegetation in a field Which of the following might lead to contamination of ground water where a property contained an underground storage tank? - Answer- Overfills and spills An owner of a residential home believed the property might contain lead-based paint. If the seller wanted t