Important concepts to learn of this section

Question 1

Growing Equity

Answer 1

The portion of the payment apply to principle increase regularly over time.

Question 2

Take Out commitment

Answer 2

Agreement between borrower and permanent lender relative to the future delivery of the take out loan upon completion of the construction loan .

Question 3

mixed-use development

Answer 3

more than one use for a single properties

Question 4

vacation home investment / max amount of time can the owner use and what rent percentage

Answer 4

14 days, 10 %

Question 5

who is responsible for ordering the preliminary title report ?

Answer 5

escrow officer

Question 6

CFPB using the closing disclosure for which type of transaction ? Consumer financial protection Bureau?

Answer 6

Residential transaction financed by a federally related loan

Question 7

Max Late penalty in TEXAS

Answer 7

No restriction

Question 8

Differences between institutional lender and non-institutional lender

Answer 8

1. Institutional lender highly regulated by state and federal agencies.but non institution have few.
2. Institutional lender are financial intermediaries.
   Non-institution invest their funds directly.
3. institutional lender not subject to usury law, while non institutional are subject to it.
4. Institutional lender => secondary mortgage market, FHA, VA but non institutional lender won’t.
5. institutional lender guarantee, LOCK IN period prior to closing, particular interest for a period of time, while Non institutional lender don’t.