Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Week 4 Assignment Purpose: The purpose of your weekly assignments is to create a quick reference studyguide to assistyou in preparing for the California Real

Week 4 Assignment

Purpose: The purpose of your weekly assignments is to create a quick reference studyguide to assistyou in preparing for the California Real Estate SalespersonLicense Exam

Instructions: Respond to the prompts listed below in all parts (part 1- no need to write complete sentences... write what will help you on the state exam). Copy and paste prompt into a Word doc and save. Submit the assignment by clicking on 'Browse My Computer' then upload. You may also type your responses.

Part 1: Study Guide Chapter 8:

  1. Identify how contingent clauses work
  2. Describe the essential elements of a contingency
  3. Name the common types of contingencies
  4. Describe the steps involved to prepare a contingent offer
  5. Distinguish the variouspre-printed forms used to establish a contingency

Chapter 9:

  1. Distinguish betweenpreapprovalandprequalification
  2. Describe the underwriting process lenders use to evaluate loan applicants
  3. Explain the importance of income, net worth, and credit reputation to underwriters
  4. Discuss the relationship between loan qualifying and purchasing power for buyers
  5. Summarize TILA and state finance disclosure laws and their requirements
  6. Name three predatory lending practices and explain how they impact borrowers

Chapter 10:

  1. Explain the basic elements of a mortgage loan
  2. Describe the features that distinguish different loan programs
  3. Discuss the characteristics of conventional and government-sponsored loans
  4. Explain seller financing options
  5. Summarize the variety of financing options available to home buyers and why a particular buyer would utilize all of those options... (for ex. FHA because the buyer...)

From now on, I will only grade Part 1. If you'd like additional exercises to help memorize the terms, feel free to continue below. I will post answers for you to review:)

Part 2: Contingent Transactions Identify which of the following forms would be most appropriate for the situations described below.

Listing Agreement Request for Repair Purchase Agreement

Interim Occupancy Agreement Contract for Deed Cancellation of Contract

Contingency for Sale of Buyer's Property Notice to Buyer to Perform

______ 1. The buyer wants the right to have the property inspected, and wants to make the sale contingent on the inspection results.

______ 2. The seller wants to be able to accept backup offers while the buyer is trying to sell his current house.

______ 3. The buyer wants to ask the seller to pay for a new furnace.

______ 4. The deadline for obtaining financing has passed and the seller hasn't heard back from the buyer; she wants to terminate the agreement and sell the property to another buyer.

______ 5. The buyer's deal for selling his current house has fallen through, so he decides to cancel the contract for the new home and just stay where he is.

Part 3: Loan Qualifying Match the appropriate term with the definition listed below.

Income ratio APR Net worth Net equity

Liquid assets Regulation Z Gift letter

Co-mortgagor Preapproval letter Credit score ______ 1. Letter containing maximum loan commitment

______ 2. Relationship between debt and income, or housing expense and income

______ 3. Total finance charges as a percentage of total amount financed

______ 4. When a family member or friend agrees to be liable for a loan

______ 5. Property value minus outstanding liabilities and selling costs

______ 6. Cash and property that can easily be converted to cash

______ 7. Letter to verify that borrower isn't required to repay certain funds

______ 8. Assets minus liabilities Part 4: Financing Programs Match the appropriate term with the definition listed below.

Loan term Note rate Alienation clause

Index Negative amortization Margin

Secondary financing Hybrid ARM Origination fee

Rate caps Refinancing Portfolio loan

Balloon payment Conversion option

______ 1. Additional funds to use for down payment or closing costs

______ 2. Amount of time borrower has to repay loan

______ 3. When unpaid interest is added to a loan's principal balance

______ 4. Allows a borrower to change from ARM to fixed-rate loan

______ 5. Difference between index rate and interest rate charged to borrower

______ 6. Loan that lender doesn't sell to secondary market

______ 7. Initial interest rate charged for an adjustable-rate loan

______ 8. Combination of adjustable- and fixed-rate loan

______ 9. Annual or life-of-loan limits on interest increases

_____ 10. Final amount that may be due at end of loan term

_____ 11. Provision requiring lender's approval for loan assumption

_____ 12. Statistical report lender uses to measure changes in the cost of money

_____ 13. Using new loan to pay off existing obligation

_____ 14. Charge to cover loan processing costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Lawyer Leadership

Authors: Leah W. Teague, Elizabeth M. Fraley, Stephen L. Rispoli

1st Edition

1543825257, 978-1543825251

More Books

Students also viewed these Law questions