FREE PSI Real Estate Financing Practice Test Questions and Answers
A landowner wants to develop a community grocery shop on a popular route in a residential zone. Which of these would be most likely to get this store's permission?
A zoning variance is specifically provided to allow the landowner to modify the physical features of the property. In contrast, a conditional use permit lets the landowner change how the property is used.
What is the loan-to-value ratio for a home loan with a 10% down payment?
Borrowers are required to put down 10% of the loan amount if the loan has a loan-to-value ratio of 90%. The typical loan-to-value ratio for conventional mortgages is 80%.
In a property disclosure statement, a seller's statement refers to _____.
If there are any problems or defects with the house that a buyer wouldn't see at first glance, the seller should list them on the property disclosure statement.
Inverse condemnation lawsuits can be filed by _____.
A homeowner files an inverse condemnation case as a civil action against a government official(s) in their representative position in the county where the official(s) lives.
When a broker associate gets an exclusive right to sell listing, it belongs to _____.
In an exclusive right to sell listing, one broker is named as the seller's only agent. In an exclusive agency listing, the seller still has the right to sell the property, and the broker is not required to do so. The Seller and a Brokerage Firm are the two parties to a listing agreement. A Brokerage Firm's official signatory is its licensee.
What paperwork does the lender send to show that a property has been liberated from a mortgage since the borrower has paid it off?
An official statement from the lender confirming the property has been paid off and is no longer subject to the lien is known as a satisfaction piece.
Which organization of the government was established to promote low-income housing?
Even though Freddie Mac has several low-income housing initiatives, all of which are second mortgage markets, only Ginnie Mae was founded to promote low-income housing.
The Civil Rights Act of 1866 forbids discrimination of any kind based on:
The Civil Rights Act of 1866 forbids discrimination based on race or color. It was the first federal law to protect all Americans equally. The Act also said what it meant to be a citizen and made it illegal to deny someone citizenship rights because of their race or color.
How do a home equity line of credit and a second mortgage differ from one another?
In a conventional second mortgage, the borrower would take out the entire amount of credit at once. The borrower in a home equity line of credit may withdraw up to a predetermined amount, but they are not required to do it in whole or all at once.
What does underwriting provide as a means for?
Mortgage lenders evaluate the risks of making a loan using a procedure called underwriting. They use elements including salary, credit history, and employment conditions in order to determine the risk of a potential borrower.
Most of the time, a competitive market analysis is used to _____.
To determine an asset's worth, real estate agents employ a CMA, which compares the subject property to others like it that have previously sold in the same region. This data is typically utilized to assist determine a fair market value when pricing a home for sale.
A managing broker is accountable for _____.
An authorized real estate broker who manages a group of real estate agents is known as a managing broker. They are responsible for making sure that their agents' licenses are still valid, for hiring, onboarding, and training new agents, and for making sure that their team performs well and follows the law. They are legally responsible for everything that their agents do.
Which organization of the government was established to promote low-income housing?
One point is equal to one percent of the loan balance. The amount would be as follows if the loan were $275,000: $275,000 *.01= $2,750
What is a biweekly mortgage's main benefit?
Due to the fact that there are 26 2-week periods in a year, homeowners who pay their mortgage biweekly must make 13 annual installments rather than 12. This leads to a shorter loan repayment period, usually between 18 and 22 years. Although in some mortgage scenarios, easier budgeting and a lower interest rate may be true, the main benefit of a biweekly mortgage is quicker loan payback.
How many brokers does an owner list the property within an exclusive right-to-sell listing?
A property seller designates and allows one real estate broker to operate as the seller's exclusive agent in an exclusive listing.
A prospective seller requests a salesperson's listing price recommendation for a property. What should the salesperson suggest?
To figure out how much the property is worth, the salesperson should suggest a competitive market analysis. Most of the time, real estate agents do this analysis by looking at the prices of similar properties that have sold in the area. To come up with a fair list price, they make the right changes to account for differences between houses sold in the same area.