CHCP CHCP Closing Costs & Fee Structures 2

Question 1

On the Closing Disclosure, the cash to close amount reflects:

Accepted Answer

Total closing costs minus lender credits plus down payment adjustments

Answer

Cash to close is calculated as the total closing costs plus the down payment, minus any lender credits, seller concessions, and deposits already paid.

Question 2

Which fee is typically collected by the title company or closing agent for conducting the settlement and is listed on the Closing Disclosure?

Accepted Answer

Escrow/settlement fee

Answer

The escrow or settlement fee compensates the closing agent for coordinating the settlement, handling documents, and disbursing funds.

Question 3

How many business days before consummation must a borrower receive the Closing Disclosure under TRID rules?

Accepted Answer

Three business days

Answer

TRID requires that the borrower receive the Closing Disclosure at least three business days before loan consummation to allow time for review.

Question 4

Which closing cost category on the Closing Disclosure includes flood determination fees, pest inspection fees, and survey fees?

Accepted Answer

Section C – Services You Can Shop For

Answer

Section C of the Loan Costs table lists required third-party services the borrower may shop for, such as pest inspections, surveys, and title services from providers not on the lender's list.

Question 5

A seller credit at closing is applied to which section of the Closing Disclosure?

Accepted Answer

Summaries of Transactions – Seller Credits column

Answer

Seller credits reduce the buyer's costs and are recorded in the Summaries of Transactions section on the buyer's side as a credit and on the seller's side as a debit.

(CHCP) Certified Home Closing Professional Practice Test

(CHCP) Certified Home Closing Professional Practice Test

CHCP CHCP Closing Costs & Fee Structures 2