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chp 7 second class > chap 9 > Flashcards

chap 9 Flashcards

1
Q

Where can agent’s find buyer leads…?
AOpen houses
BCalls from ‘For Sale’ signs
COnline advertising
DAll of the above

A

all of the above

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2
Q

Which of the following refers to an agent who is assigned to answer phone calls from prospective buyers that call the brokerage office…?
ACold Calling
BFloor Time
CClosing
DMarketing

A

floor time

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3
Q

A prospective buyer who calls an agent after seeing their ad in a newspaper can generally afford to spend more than the listing price of the property…?
AT (True)
BF (False)

A

true

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4
Q

What questions may a lender ask when trying to pre-qualify a borrower…?
AEstimated income
BAssets
CEstimated expenses
DAll of the above

A

all of the above

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5
Q

A formal application is needed to obtain which of the following from a lender…?
APre-qualification letter
BPre-approval letter
CClosing letter
DPre-commitment letter

A

pre qualification letter

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6
Q

Ideally, an offer on a property should be submitted with which of the following….?
ALine of credit from a bank
BPre-approval letter from a lender
CProof of funds letter from the buyer’s bank
DEscrow letter from the buyer

A

pre approval letter from a lender

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7
Q

Where do most home buyers begin their search for a new home…?
ANewspapers
BThe internet
CMagazines
DWalking a prospective neighborhood

A

the internet

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8
Q

The real estate market is cyclical…?
AT (True)
BF (False)

A

true

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9
Q

What is a typical reason why people choose to buy a home rather than rent…?
APride of ownership
BAppreciation
CTax benefits
DAll of the above

A

all of the above

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10
Q

Real estate is considered a liquid asset…?
AT (True)
BF (False)

A

false

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11
Q

A real estate agent is not allowed to give ………..advice to their clients?
AMarketing
BAdvertising
CTax
Dhome staging

A

tax

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12
Q

Which of the following is considered a tax deduction…?
APrincipal paid on a mortgage
BEarnest money
CInterest paid on a mortgage
DA down payment

A

interest paid on a mortage

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13
Q

Most prospective buyers who attend an open house do not make an offer on the house…?
AT (True)
BF (False)

A

true

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14
Q

Most prospective buyers purchase the initial house they inquiry about…?
AT (True)
BF (False)

A

false

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15
Q

Most homebuyers tend to buy with their emotions…?
AT (True)
BF (False)

A

true

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16
Q

A borrower’s total monthly mortgage payment divided by their gross monthly earnings equals a lender’s…?
ABack-end ratio
BFront-end ratio
CLoan-to-value ratio
DCredit ratio

A

front end ratio

17
Q

What does a lender typically want to see as a front-end ratio for a borrower…?
A28 percent (%)
B36 percent (%)
C42 percent (%)
D50 percent (%)

A

28

18
Q

Which of the following ratios by a lender indicates what portion of a person’s monthly income goes toward paying debts….?
ABack-end ratio
BFront-end ratio
CLoan-to-value ratio
DCredit ratio

A

back end ratio

19
Q

What does a lender typically want to see as a back-end ratio for a borrower…?
A28 percent (%)
B36 percent (%)
C42 percent (%)
D50 percent (%)

A

36

20
Q

Lenders typically consider long-term debt as debt that will not be paid off in at least…?
A1 month
B3 months
C6 months
D12 months

A

6

21
Q

Which type of income is typically used in a lender’s front-end ratio…?
ANet income
BGross income
CRecurring income
DTaxable income

A

gross income

22
Q

Buyers typically know exactly what type of property they want to buy…?
AT (True)
BF (False)

A

false

23
Q

Agents should try to setup an immediate phone call with new email leads…?
AT (True)
BF (False)

A

true

24
Q

Which of the following is received from a prospective buyer who calls an agent after seeing their number on a ‘For Sale’ sign…?
AFloor call
BAd call
CSign call
DCold call

A

sign call

25
Q

Which of the following is given by a lender to a purchaser stating that he/she prequalifies for a loan…?
APre-qualification letter
BPre-approval letter
CCommitment letter
DClosing letter

A

Pre-qualification letter

26
Q

Which of the following is a step above pre-qualification…?
APre-approval
BCommitment
CClosing
DInquiry

A

Pre-approval

27
Q

the first goal when speaking with a new lead is to get their contact information…?
AT (True)
BF (False)

A

true

28
Q

Which of the following parties typically pays the broker’s commission…?
ABoth the buyer and seller
BThe buyer
CThe seller
DThe escrow agent

A

the seller

chp 7 second class (6 decks)

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