FREE Arizona Real Estate License Financing and Valuation Principles Questions and Answers

Question 1

A first-time homebuyer in Tucson has a good credit score but limited funds for a down payment.
Which loan type would most likely require them to pay for both an upfront and an annual Mortgage Insurance Premium (MIP)?

Accepted Answer

FHA loan

Answer

VA loan

Answer

Conventional loan with 20% down

Answer

Seller-financed loan

Question 2

An appraiser is tasked with valuing a newly constructed, custom-built luxury home in a subdivision where there are no recent comparable sales. Which approach to valuation would be most heavily weighted in their final analysis?

Accepted Answer

Cost Approach

Answer

Sales Comparison Approach

Answer

Income Approach

Answer

Gross Rent Multiplier

Question 3

In Arizona, most residential loans are secured by a Deed of Trust. If the borrower defaults, what is the most common procedure for the lender to reclaim the property?

Accepted Answer

Trustee's Sale

Answer

Judicial foreclosure

Answer

Strict foreclosure

Answer

Deed in lieu of foreclosure

Question 4

A buyer obtains a $400,000 loan to purchase a $500,000 home. The lender charges the buyer 2 discount points. How much will the buyer have to pay for these points at closing?

Accepted Answer

$8,000

Answer

$10,000

Answer

$5,000

Answer

$4,000

Question 5

Which of the following is a primary requirement of the federal Truth in Lending Act (TILA), as implemented by Regulation Z?

Accepted Answer

Requiring disclosure of the Annual Percentage Rate (APR)

Answer

Prohibiting kickbacks for settlement service referrals

Answer

Providing the borrower with a Loan Estimate within three business days of application

Answer

Mandating a home inspection for all government-backed loans

Question 6

In Arizona, property taxes are levied on an *ad valorem* basis. A property has a full cash value (FCV) of $500,000 and a limited property value (LPV) of $450,000. For the purpose of calculating primary property taxes, which value is used?

Accepted Answer

The Assessed Value, which is derived from the LPV

Answer

The Full Cash Value (FCV)

Answer

The average of the FCV and LPV

Answer

The market value determined by a recent appraisal

A first-time homebuyer in Tucson has a good credit score but limited funds for a down payment.Which loan type would most likely require them to pay for both an upfront and an annual Mortgage Insurance Premium (MIP)?

A first-time homebuyer in Tucson has a good credit score but limited funds for a down payment.
Which loan type would most likely require them to pay for both an upfront and an annual Mortgage Insurance Premium (MIP)?