10 Questions
A commitment letter is issued to a borrower if both the buyer and the property meet the lender's qualifying standards.
True
An impound account is used by lenders to ensure property taxes and hazard insurance are paid on time.
True
The borrower's first mortgage payment is typically due on September 15, if the loan closes on that date.
False
A borrower has to decide whether to lock in the interest rate before the commitment letter is issued.
False
A closing disclosure is prepared by the escrow agent when a transaction is ready to close.
True
The lender must provide a statement explaining why a loan application was denied by October 1.
False
Discount points are typically collected by lenders to reduce the interest rate for the borrower.
True
Buydown is a term used when a borrower decides to increase the interest rate until closing.
False
A commitment letter is issued to a borrower after the loan closes.
False
An impound account is used by borrowers to save money for their down payment.
False
This lesson covers topics related to the financing process, such as preapproval, loan costs, Truth in Lending Act, loan application process, underwriting process, and the closing process.
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