VA Practice Test 1 Exam with Complete Questions And Answers

VA Practice Test 1 Exam with Complete Questions And Answers A couple executes a sales contract on their home after several counteroffers with the buyer. In this case, the seller is.... - answerGrantor 1 acre equals ____ sq feet - answer43,560 A primary residence is sold for $527,000 by a couple in the 28% tax bracket. The home was originally purchased by them eight years ago for $313,000 where the family lived for the entire eight years. How much will be paid in capital gains tax? - answerNone b/c 1) primary residence 2) lived there for at least 2 of past 5 years 3) sold at a gain of less than $500,000 An owner-occupied four unit dwelling worth $525,000 generates $4500 in monthly income from 3 units and $150/mo from the onsite laundry. If the current owner typically yields roughly 9% annually on his investment, what is the monthly effective gross amount? - answer$4,650 (sum of all income generated) A brother is moving out of the county and decides to sell him home to his sister for $275,000, making this the latest sale in that area. The sister decided to pay cash, as she says she will later get a home equity loan for $200,000. Recent sales comps of very similar homes had values of $325,000. based on the information provided, what is the best estimate of the market value of the subject property - answer$325,000 b/c the transaction is "non-arms length" A breach of contract occurs.... - answerwhen one of the parties does not follow through with their end of the contract. The party that did not break the contract can sue for damages. A seller provides written permission allowing his listing broker (who has a fiduciary obligation to the seller) to work with the buyer. The relationship is known as.... - answerSub-agency which requires that the listing broker obtain written permission from the seller and that the fiduciary duties are to the seller. A homeowner purchased a home for $300k on a 30 year FHA loan with an interest rate of 4.25%. If he wants to do cash-out conventional refinance and eliminate the MIP, what is the largest amount that the new loan balance can be based on a future home amount of $350,000? - answer$279,900 (350,000x.80). LTV must be below 80% in order to avoid MIP. Define "contract" - answeran agreement between two or more parties that is either written or oral. A brother is moving out of the country and decides to sell his home to his sister for $275,000, making this home the latest sale in that area. This sister puts 20% down and finances $220,000. Recent sales comps of similar homes had values of $485,000. Based on the information provided, what is the market value? - answer$485,000 since it is not "an arms-length" transaction. An example of emblements are..... - answertomato, lettuce, and onion crops. Emblements are crops that are annually cultivated. Nine states recognize this system of property ownership where the husband and wife have equal interest in property acquired during marriage. This is known as.... - answerCommunity Property (each spouse has equal interest in property acquired during marriage). A dad who owns his house free and clear decides to take out a HELOC and let his son make the payments. He also signs a quitclaim deed to transfer the home into his son's name. What clause might the lender enforce? - answerDue on sale clause b/c the borrower has transferred the property , the lender is allowed to demand full payment. A couple in Virginia requests the name of an excellent home inspector from their agent. The realtor should respond by.... - answer1) providing them w/ a brochure(s) 2) tell them it is a conflict for her to recommend an inspector 3) direct them to the sate home inspection website The Federal Home Loan Mortgage Corp. primarily purchases which loan types? - answerFannie Mae and Freddie Mac purchase conventional loans. Sally works for ABC Bank. Her job duties are to gather documents, review the application for accuracy, package the loan, and take each file from pre-approval to closing. What is most likely her job title? - answerProcessor. They prepare the loan package for the underwriter. Which of the following does not lend money directly to borrowers? Insurance Co., Mortgage broker, cooperative bank or private lender - answerMortgage brokers bring borrowers together w/ lenders. Jay decides that he's ready to move out of his parents' home and purchase his own home. He has a roommate who will be moving in so he would like at least a 3 bedroom house. What should his first step be? - answerGet pre-qualified by submitting a mortgag