The Mortgage Process

Question 1

Promissory Note

Answer 1

Includes two documents. Which one details the amount of principal and how it will be repaid?

Question 2

Mortgage

Answer 2

This two-party security instrument grants the lender a lien against the property and allows judicial foreclosure.

Question 3

LTV is used to…

Answer 3

lenders use a loan to value (LTV) ratio to determine whether borrowers need to pay PMI, as well as when they can stop paying it.

Question 4

The law requires that two specific forms

Answer 4

the Loan Estimate and Closing Disclosure forms

Question 5

Other disclosures due to buyer prior to closing

Answer 5

In addition to the Loan Estimate and the Closing Disclosure, lenders must provide consumers with an escrow closing notice, mortgage servicing transfer, and partial payment notice.

Question 6

POC is…

Answer 6

Paid Outside of Closing

Question 7

Title search fees

Answer 7

Are NOT paid outside of closing. They are considered a part of the Closing Disclosure.

Question 8

Which real estate finance instrument in Georgia may include the pledging of collateral and the release of that collateral in the same document?

Answer 8

Security deed

Question 10

What is a swing loan?

Answer 10

Bridge/swing loans are used when a seller has put a home on the market but it has not yet sold and the seller wants to borrow equity to buy another home. The seller’s existing home is used as security for a bridge loan.