General Knowledge 2

Question 1

Housing expense on the borrowers principal residence, all revolving charge accounts, installment loan debt’s and lease payments are all examples of what?

Answer 1

Liabilities

Question 2

If installment loan debt with less than _____months left on it, then the underwriter does not have to consider it in the borrower debt to income ratio.

Answer 2

10

Question 3

Real estate loans, HELOCS, alimony and child support, maintenance payments and all other debts of recurring nature are examples of what?

Answer 3

Liabilities

Question 4

Our utility bills and cell phone payment is considered liabilities?

Answer 4

No

Question 5

Are insurance payments, tax payments and union dues considered liabilities?

Answer 5

No

Question 6

Are voluntary deductions on paystub’s such as 401(k) contributions, considered liabilities?

Answer 6

No

Question 7

Debt to income qualifications on a conventional loan.

Answer 7

28/36

Question 8

Debt to income qualifications or an FHA loans.

Answer 8

31/43

Question 9

Debt to income qualifications on VA loans.

Answer 9

Back end DTI of 41% with residual income calculation

Question 10

Debt to income qualifications for a USDA loan.

Answer 10

29/41

Question 11

Another term for the “Front End” DTI

Answer 11

Housing expense

Question 12

The ______ _____ On DTI is only the borrowers housing expense compared to their income.

Answer 12

Front end

Question 13

Another term for back end of DTI.

Answer 13

Total

Question 14

The ______ ______ on DTI is all of the borrowers liabilities compared to their income.

Answer 14

Back End

Question 15

Loan to value equation.

Answer 15

Take the loan amount and divide it by the borrowers purchase price or the properties appraised value, which ever is lower

Question 16

If you take the loan amount and divide it by the borrowers purchase price or the properties appraised value, whichever is lower.
What does this equation equal?

Answer 16

LTV Or loan to value

Question 17

What are the three bureaus that a credit score can be pulled from?

Answer 17

Experian, Equifax and Transunion

Question 18

In a situation where a borrower is qualifying for a mortgage the lender is going to pull a __________ meaning they’re going to pull the report and scores from all three bureaus.

Answer 18

Tri-merge

Question 19

Generally the underwriter is going to take the lowest __________ credit score of the borrowers.

Answer 19

Middle

Question 20

When an underwriter takes the lowest middle credit score of the borrowers this makes up what score?

Answer 20

Qualifying

Question 21

Credit scores can range from ______ to _________.

Answer 21

300-850

Question 22

What are the four things included in your credit score?

Answer 22

1. Payment history
2. Amounts owed
3. Credit mix
4. New credit

Question 23

When it comes to credit scores, what does credit mix mean?

Answer 23

How many different types of accounts you have.

Question 24

When it comes to credit scores, what does new credit mean?

Answer 24

The age of your credit, have you recently open new credit, etc.

Question 25

With a conventional loan, the borrower is prohibited from obtaining a loan if they’ve had a foreclosure reported on their credit with in the previous ____ years.

Answer 25

7….157