Real Estate Investment CE – Champions
School, Full Test Questions with Solutions
Comprehensive Study Guide for Real Estate Professionals
July 2025
280 Questions with Detailed Solutions
,Contents
1 Introduction 2
2 Real Estate Investment CE Questions and Solutions 2
2.1 Mortgage and Financing Essentials . . . . . . . . . . . . . . . . . . . . . 2
2.2 Property and Investment Concepts . . . . . . . . . . . . . . . . . . . . . 8
2.3 Legal and Regulatory Principles . . . . . . . . . . . . . . . . . . . . . . . 10
2.4 Advanced Investment Concepts . . . . . . . . . . . . . . . . . . . . . . . 11
1
, Real Estate Investment CE – Champions School
1 Introduction
This study guide is crafted for real estate professionals preparing for the Champions
School of Real Estate Investment Continuing Education (CE) Exam. It provides 280
revised questions with comprehensive, jargon-free solutions, covering essential topics such
as mortgage financing, investment strategies, property valuation, and legal frameworks.
Sourced from reliable materials like Quizlet and Champions School content, each solution
is thoroughly explained to enhance understanding and ensure exam success. Questions
are highlighted in dark green for clarity, with answers in black to maintain readability.
2 Real Estate Investment CE Questions and Solutions
2.1 Mortgage and Financing Essentials
1. What term describes the initiation of a mortgage loan process?
Solution: Origination.
Explanation: Origination refers to the initial steps of applying for a mortgage,
where a borrower submits financial details, and the lender evaluates eligibility.
This process includes collecting documentation, verifying income, and assessing the
property, setting the stage for underwriting and approval. It ensures all parties are
prepared for the lending process, aligning borrower needs with lender criteria.
2. What process assesses a borrower’s loan repayment ability and property value?
Solution: Underwriting.
Explanation: Underwriting is the lender’s risk evaluation, analyzing the borrower’s
credit score, income stability, debt-to-income ratio, and the property’s appraised
value. Underwriters determine if the loan is viable, balancing the borrower’s finan-
cial capacity with the collateral’s worth to minimize default risk. This critical step
protects the lender’s investment while ensuring fair terms.
3. What concludes a real estate transaction with document signing and fund transfer?
Solution: Closing.
Explanation: Closing, also called settlement, is the final stage where all parties
sign legal documents, funds are disbursed, and ownership transfers. The Closing
Disclosure is reviewed, ensuring transparency in loan terms and costs. The deed
is recorded, making the transaction official, and funds are distributed to the seller,
lender, and other parties.
4. What ensures funds are available for a real estate transaction’s completion?
Solution: Funding.
Explanation: Funding involves the lender transferring the loan amount to an escrow
or title company for distribution at closing. This step confirms all conditions, such
as appraisals and title clearance, are met, ensuring the buyer, seller, and other
parties receive their payments, completing the financial aspect of the transaction.
5. Which 2008 law aimed to stabilize the housing market?
Solution: Housing and Economic Recovery Act (HERA).
Explanation: Enacted during the 2008 financial crisis, HERA bolstered Fannie Mae
and Freddie Mac, reformed the Federal Housing Administration, and offered tax
2
School, Full Test Questions with Solutions
Comprehensive Study Guide for Real Estate Professionals
July 2025
280 Questions with Detailed Solutions
,Contents
1 Introduction 2
2 Real Estate Investment CE Questions and Solutions 2
2.1 Mortgage and Financing Essentials . . . . . . . . . . . . . . . . . . . . . 2
2.2 Property and Investment Concepts . . . . . . . . . . . . . . . . . . . . . 8
2.3 Legal and Regulatory Principles . . . . . . . . . . . . . . . . . . . . . . . 10
2.4 Advanced Investment Concepts . . . . . . . . . . . . . . . . . . . . . . . 11
1
, Real Estate Investment CE – Champions School
1 Introduction
This study guide is crafted for real estate professionals preparing for the Champions
School of Real Estate Investment Continuing Education (CE) Exam. It provides 280
revised questions with comprehensive, jargon-free solutions, covering essential topics such
as mortgage financing, investment strategies, property valuation, and legal frameworks.
Sourced from reliable materials like Quizlet and Champions School content, each solution
is thoroughly explained to enhance understanding and ensure exam success. Questions
are highlighted in dark green for clarity, with answers in black to maintain readability.
2 Real Estate Investment CE Questions and Solutions
2.1 Mortgage and Financing Essentials
1. What term describes the initiation of a mortgage loan process?
Solution: Origination.
Explanation: Origination refers to the initial steps of applying for a mortgage,
where a borrower submits financial details, and the lender evaluates eligibility.
This process includes collecting documentation, verifying income, and assessing the
property, setting the stage for underwriting and approval. It ensures all parties are
prepared for the lending process, aligning borrower needs with lender criteria.
2. What process assesses a borrower’s loan repayment ability and property value?
Solution: Underwriting.
Explanation: Underwriting is the lender’s risk evaluation, analyzing the borrower’s
credit score, income stability, debt-to-income ratio, and the property’s appraised
value. Underwriters determine if the loan is viable, balancing the borrower’s finan-
cial capacity with the collateral’s worth to minimize default risk. This critical step
protects the lender’s investment while ensuring fair terms.
3. What concludes a real estate transaction with document signing and fund transfer?
Solution: Closing.
Explanation: Closing, also called settlement, is the final stage where all parties
sign legal documents, funds are disbursed, and ownership transfers. The Closing
Disclosure is reviewed, ensuring transparency in loan terms and costs. The deed
is recorded, making the transaction official, and funds are distributed to the seller,
lender, and other parties.
4. What ensures funds are available for a real estate transaction’s completion?
Solution: Funding.
Explanation: Funding involves the lender transferring the loan amount to an escrow
or title company for distribution at closing. This step confirms all conditions, such
as appraisals and title clearance, are met, ensuring the buyer, seller, and other
parties receive their payments, completing the financial aspect of the transaction.
5. Which 2008 law aimed to stabilize the housing market?
Solution: Housing and Economic Recovery Act (HERA).
Explanation: Enacted during the 2008 financial crisis, HERA bolstered Fannie Mae
and Freddie Mac, reformed the Federal Housing Administration, and offered tax
2
