Mortgage Process 2

Question 1

What is the purpose of a Loan Estimate (LE) in the mortgage process?

Accepted Answer

To provide a standardized summary of loan terms, projected payments, and closing costs

Answer

To finalize the loan terms after closing

Answer

To replace the appraisal report

Answer

To confirm the borrower's employment status

Question 2

How long does a lender typically have to provide a Loan Estimate after receiving a completed application?

Accepted Answer

3 business days

Answer

1 business day

Answer

7 business days

Answer

10 business days

Question 3

What triggers the three-day waiting period before a mortgage can close under TRID rules?

Accepted Answer

Delivery of the Closing Disclosure

Answer

Delivery of the appraisal report

Answer

Submission of the title commitment

Answer

Completion of the underwriting review

Question 4

Which step in the mortgage process involves verifying that a property's title is free of liens or legal encumbrances?

Accepted Answer

Title search

Answer

Appraisal

Answer

Home inspection

Answer

Underwriting

Question 5

What does 'rate lock' mean in the mortgage process?

Accepted Answer

The lender guarantees a specific interest rate for a defined period

Answer

The borrower agrees to a fixed monthly payment

Answer

The lender freezes the application review

Answer

The borrower locks in their down payment amount

Question 6

What is the role of a mortgage underwriter?

Accepted Answer

To assess whether the borrower and property meet the lender's criteria for loan approval

Answer

To conduct the home appraisal

Answer

To negotiate the purchase price with the seller

Answer

To calculate escrow payments

Question 7

Which document formally transfers ownership of a property from the seller to the buyer at closing?

Accepted Answer

Warranty deed

Answer

Promissory note

Answer

Deed of trust

Answer

Settlement statement