GRI - Contracts to Close (Texas) questions and answers

hat is the purpose of the secondary mortgage market? mortgage bankers What provides liquidity that lenders use to fund new mortgage to homebuyers? secondary Market the players in the real estate finance market always adhere to and specialize with LITTLE crossover? (true or false) false - there is a lot of crossover what is a conventional loan? a non-government loan what is mortgage insurance called? MIP - Mortgage Insurance Premium what are the benefits of a VA loan? 1. no down payment 2. lower interest rates (compared to conventional) 3. surviving spouses may be eligible what is the most common FHA loan? 203(b) what is the maximum entitlement for VA loan? 25% of the loan amount which is typically the same as the conforming loan limit what law encourages commercial banks to loan in their community? Housing and Community Development Act (CRA) what does a temporary buy down lower? lowers the payment, NOT the rate a permanent buy-down lowers the monthly payment for the life of the loan? (true or false) True lowering the monthly payment by lowering the interest rate for a predetermined period of time? temporary buy-down what do credit score take into account? 1. identifying information 2. inquires into opening new lines of credit and extending the debt further 3. public records of different types of default, such as judgments, liens, bankruptcies, and the like what triggers a revised closing disclosure and an additional three days waiting period? 1. the APR changes by more than 1/8% 2. the loan product changes 3. a prepayment penalty is added what will not trigger a revised closing date and an additional three day waiting period? a minor lender error how many members in the Broker Lawyer Committee? 13 members Who appoints the public memeber? the governor what name do you use for buyers? full legal name on paragraph 4 of the contract - what is the license holder disclosing? interest of the property if he is a trustee of the property what are some of the standard expectations? 1. restrictive covenants 2. utility easements 3. tide lands what insurance policy covers a change of ownership? title policy who pays for title policy it is negotiable who authorized hydrostatic testing? the seller who is obligated to pay for lender required repairs? neither party what is a good example of written agreement where broker fees are written? listing agreement which amendment is used if a seller is occupying property after closing? Seller's Temporary Lease Agreement who is entitled to recover attorney fee? which ever party prevails if BUYER defaults, the SELLER can? 1. sue for damages 2. accept the earnest money for liquidated damages if SELLER defaults, the BUYER can? 1. sue for specific performance 2. receive the earnest money who drafts forms to use that are not promulgated? Texas Realtors buyers make payments however title remains vested with the seller is known as? contract for deed who can do a CMA? 1. a licensed real estate broker 2. a salesperson CMA 3. a registered, licensed or certified appraiser what must be completed and initialed on a property when negotiation comes into play? the CMA what contract is used when a buyer's finances are contingent upon approval? Third Party Financing Addendum does a sold comparable need to be accessed on the inside to be used as a comparable? NO would a CMA be used to figure out commission? NO according to article 11, if you are not competent in an zone your are comping, should you seek some help from someone who is? YES a sale of a foreclosure must be what to be considered typical in the market? arm's lenght a property that is sold for a price that is extremely high or low based on all other comparables is called what? outliners