CHAPTER 18 QUESTIONS WITH
CORRECT DETAILED ANSWERS
k A loan that fails to meet bank criteria for funding is known as what...? - Non Conforming Loan
A written notice from the bank or other lending institution saying it will advance mortgage funds in a
specified amount to enable a buyer to purchase a house is known as what...? - Mortgage Commitment
Which of the following is a function performed by a mortgage loan officer...?
A) All of the above
B) Speaks with the client
C) Qualifies the client
D) Walks the client through the process - All of the above
Which of the following is issued after a bank pre-approves a buyer...? - Commitment Letter
This document is the most important document in a loan package, also known as a 1003...? - Loan
Application Form
Where can a buyer go to obtain a mortgage...?
A) All of the above
B) Commercial lender
C) Mortgage banker
D) Credit union - All of the above
Your client would like to obtain bank financing as quickly as possible. You advise that in order to do so
they should work with a loan originator who is as close to the underwriter as possible. Based on this
advice, who should your client work with to obtain a mortgage...? - Mortgage Banker
What must all mortgage bankers and brokers have in order to practice as a loan originator...? - License
You have a client who is interested in purchasing a coop in Manhattan. As a real estate agent, what
should you do before showing prospective properties to your client...? - Verify that the client can obtain
financing on the property
An agreement between a borrower and a lender that allows the borrower to lock in the interest rate on
a mortgage over a specified period of time is known as what...? - Rate Lock
CORRECT DETAILED ANSWERS
k A loan that fails to meet bank criteria for funding is known as what...? - Non Conforming Loan
A written notice from the bank or other lending institution saying it will advance mortgage funds in a
specified amount to enable a buyer to purchase a house is known as what...? - Mortgage Commitment
Which of the following is a function performed by a mortgage loan officer...?
A) All of the above
B) Speaks with the client
C) Qualifies the client
D) Walks the client through the process - All of the above
Which of the following is issued after a bank pre-approves a buyer...? - Commitment Letter
This document is the most important document in a loan package, also known as a 1003...? - Loan
Application Form
Where can a buyer go to obtain a mortgage...?
A) All of the above
B) Commercial lender
C) Mortgage banker
D) Credit union - All of the above
Your client would like to obtain bank financing as quickly as possible. You advise that in order to do so
they should work with a loan originator who is as close to the underwriter as possible. Based on this
advice, who should your client work with to obtain a mortgage...? - Mortgage Banker
What must all mortgage bankers and brokers have in order to practice as a loan originator...? - License
You have a client who is interested in purchasing a coop in Manhattan. As a real estate agent, what
should you do before showing prospective properties to your client...? - Verify that the client can obtain
financing on the property
An agreement between a borrower and a lender that allows the borrower to lock in the interest rate on
a mortgage over a specified period of time is known as what...? - Rate Lock
