Champions Real Estate - Principles 2 Exam Questions with Accurate Answers

appraised value - ANSWER-An opinion of value Loan-to-Value Ratio - ANSWER-the maximum percentage of the value of a property that the lender is willing to loan An appraisal that is less that the sales price will generally result in what 3 ways? - ANSWER-1) Termination of the Transaction 2) Reduction in the sales price by the seller to match the appraised value 3) Payment of the difference between the sales price and the appraised value by the buyer/borrower 3 basic types of appraisal reviews - ANSWER-1) desk review 2) field review 3) limited review Desk Review - ANSWER-a checklist of items as they analyze the appraisal report for completeness and acceptable conclusions Field Review - ANSWER-Many lenders, especially when dealing with high-LTV loans, will contract a 3rd party appraiser to verify the accuracy of the data, elements, and procedures used by the original appraiser Limited Appraisal - ANSWER-short version of the appraisal report. Usually an exterior-only or drive-by inspection. Used for low LTV or low risk loans. subject property - ANSWER-In an appraisal report, the property being appraised is referred to as the