Credit And Lending Flashcards
How much cash should people have saved?
About 3 - 6 months to meet fixed and variable living expense.
What is the difference between Prequalification and Preapproval?
Prequalification is an estimate of the amount you can afford for a mortgage. Preapproval involves verification of income, credit history, etc. An actual number will be given.
How can be excluded on realized gains when you sell your house?
$250,000 for individuals, $500,000 if married and file jointly.
What 3 methods are used by an appraiser to value real estate?
Cost basis - most used for new construction; property is valued at the building costs; value of land is separate
Market comparison - value of similar homes that have recently sold
Income basis - present value of income expected from the property.
