General Mortgage Knowledge Flashcards
What is the funding fee for a veteran who has never received a VA loan before and doesn’t have a down payment?
2.3%
On which two documents would a pre-payment penalty be disclosed?
CD and LE
PUD is the acronym for:
Planned Unit Development
What is the name of Freddie Mac’s automated underwriting system?
Product Advisor
Name three credit reporting agencies.
Equifax, Experian, TransUnion
True/False - You can use a cash advance from a credit card for a Fannie Mae down payment.
False
What is the name of Fannie Mae’s automated underwriting system?
Desktop Underwriter
What is a discount point?
A charge to the borrower to decrease the interest rate on a mortgage loan.
How is a borrower’s credit score determined?
Credit mix, items from public record, payment history
The Homeowner Protection Act states that when a loan to value falls below 78% PMI is to be:
terminated
What is a deed of trust?
it is the security instrument that the borrower gives to the lender that protects the lender’s interest in the property. When the borrower signs the mortgage or deed of trust, they are giving the lender the right to take the property by foreclosure if they fail to pay their mortgage property.
There are two main components of determining the interest rate on an ARM, which part of an ARM is set at the beginning and never changes
Margin.
What is the wait period for Ch 7 BK for an FHA loan?
2 years
In an effort to be an informed borrower, what should the borrower receive from the lender?
Loan Estimate.
The 1003 is also known as?
The Uniform Residential Loan Application
