HUD CERTIFICATION CORE EXAM MANUAL 2025/2026
QUESTIONS WITH ANSWERS RATED A+
✔✔Real Estate Agent Licenses - ✔✔Check the licenses of real estate agents or brokers
and lenders to ensure they are legitimate professionals.
✔✔Online Reviews - ✔✔Read online reviews about homebuying professionals you are
considering.
✔✔Referrals from Family and Friends - ✔✔Request referrals of homebuying
professionals from family and friends.
✔✔Bank References - ✔✔Seek references for homebuying professionals from your
bank.
✔✔Selecting a Real Estate Agent - ✔✔Select a real estate agent or broker first and ask
for recommendations for other homebuying team members.
✔✔State Licensing Agency Complaints - ✔✔Reach out to the state licensing agency to
see if there have been any complaints filed against a real estate agent or broker.
✔✔Recent Homebuyers' Experiences - ✔✔Ask people who have recently purchased
homes about their experiences working with their homebuying professionals.
✔✔Step 4: Shopping for a Home - ✔✔Real estate agents or brokers help search for
homes that fit clients' needs and make appointments for showings.
✔✔Client's Home Features List - ✔✔Client makes a list of the home features they need
or want.
✔✔Distinguishing Needs vs Wants - ✔✔Client needs to distinguish needs vs wants.
✔✔Supplementing Real Estate Agent Efforts - ✔✔Encourage your clients to
supplement the efforts of their real estate agent or broker to search for homes that fit
their needs.
✔✔Online Search for Homes - ✔✔Search online for homes.
✔✔Neighborhood Drive - ✔✔Drive through neighborhoods.
✔✔Attend Open Houses - ✔✔Attend open houses.
✔✔Step 5: Making an Offer - ✔✔Real estate agents or brokers will consult with
homebuyers to determine a price to offer the sellers.
, ✔✔Initial Offer Letter - ✔✔The buyers' real estate agent or broker writes a sales
contract stating the determined price and gives this to the sellers' real estate
representative.
✔✔Negotiation Process - ✔✔Sellers may accept the buyers' initial offer, decline the
initial offer, or make a counter-offer.
✔✔Earnest Money Deposit - ✔✔When buyers and sellers reach an agreement on a
price and terms of the deal, the buyers will give their real estate agent a check for the
earnest money deposit to be held until closing.
✔✔Check Purpose - ✔✔To prove the buyers' sincere intent to purchase the home.
✔✔Deposit Amount - ✔✔Typically ranges by region, from as low as 1% of the sales
price to as high as 10%, and can be negotiated.
✔✔Higher Deposit - ✔✔Shows greater intent to buy.
✔✔Loan Origination Fees - ✔✔A charge by the lender to cover the administrative costs
of making the mortgage, paid at closing, and varies with the lender and type of loan.
✔✔Common Loan Origination Fee - ✔✔1 to 2% of the mortgage amount.
✔✔Discount Points - ✔✔A type of pre-paid interest normally paid at closing, generally
calculated to be equivalent to 1% of the total loan amount.
✔✔Purpose of Discount Points - ✔✔To reduce the interest rate on a loan.
✔✔Pre-Approval - ✔✔When a lender commits to lend a fixed loan amount based on a
review of a completed loan application, credit reports, debt, savings, and a review by an
underwriter.
✔✔Pre-Qualification - ✔✔A discussion with a lender about financial history, generally
without cost, underwriting process, or commitment, leading to a recommendation of the
mortgage best suited to the client.
✔✔Abusive Lending - ✔✔When a lender deceitfully persuades a borrower to consent to
unfair or illegal loan terms.
✔✔URLA - ✔✔A standardized document published by government-sponsored
enterprises, including a reorganized layout and simplified terminology for greater clarity
in loan applications.
QUESTIONS WITH ANSWERS RATED A+
✔✔Real Estate Agent Licenses - ✔✔Check the licenses of real estate agents or brokers
and lenders to ensure they are legitimate professionals.
✔✔Online Reviews - ✔✔Read online reviews about homebuying professionals you are
considering.
✔✔Referrals from Family and Friends - ✔✔Request referrals of homebuying
professionals from family and friends.
✔✔Bank References - ✔✔Seek references for homebuying professionals from your
bank.
✔✔Selecting a Real Estate Agent - ✔✔Select a real estate agent or broker first and ask
for recommendations for other homebuying team members.
✔✔State Licensing Agency Complaints - ✔✔Reach out to the state licensing agency to
see if there have been any complaints filed against a real estate agent or broker.
✔✔Recent Homebuyers' Experiences - ✔✔Ask people who have recently purchased
homes about their experiences working with their homebuying professionals.
✔✔Step 4: Shopping for a Home - ✔✔Real estate agents or brokers help search for
homes that fit clients' needs and make appointments for showings.
✔✔Client's Home Features List - ✔✔Client makes a list of the home features they need
or want.
✔✔Distinguishing Needs vs Wants - ✔✔Client needs to distinguish needs vs wants.
✔✔Supplementing Real Estate Agent Efforts - ✔✔Encourage your clients to
supplement the efforts of their real estate agent or broker to search for homes that fit
their needs.
✔✔Online Search for Homes - ✔✔Search online for homes.
✔✔Neighborhood Drive - ✔✔Drive through neighborhoods.
✔✔Attend Open Houses - ✔✔Attend open houses.
✔✔Step 5: Making an Offer - ✔✔Real estate agents or brokers will consult with
homebuyers to determine a price to offer the sellers.
, ✔✔Initial Offer Letter - ✔✔The buyers' real estate agent or broker writes a sales
contract stating the determined price and gives this to the sellers' real estate
representative.
✔✔Negotiation Process - ✔✔Sellers may accept the buyers' initial offer, decline the
initial offer, or make a counter-offer.
✔✔Earnest Money Deposit - ✔✔When buyers and sellers reach an agreement on a
price and terms of the deal, the buyers will give their real estate agent a check for the
earnest money deposit to be held until closing.
✔✔Check Purpose - ✔✔To prove the buyers' sincere intent to purchase the home.
✔✔Deposit Amount - ✔✔Typically ranges by region, from as low as 1% of the sales
price to as high as 10%, and can be negotiated.
✔✔Higher Deposit - ✔✔Shows greater intent to buy.
✔✔Loan Origination Fees - ✔✔A charge by the lender to cover the administrative costs
of making the mortgage, paid at closing, and varies with the lender and type of loan.
✔✔Common Loan Origination Fee - ✔✔1 to 2% of the mortgage amount.
✔✔Discount Points - ✔✔A type of pre-paid interest normally paid at closing, generally
calculated to be equivalent to 1% of the total loan amount.
✔✔Purpose of Discount Points - ✔✔To reduce the interest rate on a loan.
✔✔Pre-Approval - ✔✔When a lender commits to lend a fixed loan amount based on a
review of a completed loan application, credit reports, debt, savings, and a review by an
underwriter.
✔✔Pre-Qualification - ✔✔A discussion with a lender about financial history, generally
without cost, underwriting process, or commitment, leading to a recommendation of the
mortgage best suited to the client.
✔✔Abusive Lending - ✔✔When a lender deceitfully persuades a borrower to consent to
unfair or illegal loan terms.
✔✔URLA - ✔✔A standardized document published by government-sponsored
enterprises, including a reorganized layout and simplified terminology for greater clarity
in loan applications.
