Transaction Process Part I Flashcards Preview

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Flashcards in Transaction Process Part I Deck (33)
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1
Q

Name three items in the real estate transaction process

A

Receive and review all Offer to Purchase contracts submitted by buyers or buyer’s agents
Evaluate offer(s) and prepare a “net sheet” on each for the owner for comparison purposes
Counsel seller on offers. Explain merits and weakness of each component of each offer
Contact buyer’s agents to review buyer’s qualifications and discuss offer

2
Q

The listing broker is responsible for the accuracy of what for closing?

A

The settlement statements and making sure that all parties get signed copies of the settlement statements

3
Q

The brokers that earn a split of the commission are known as what?

A

Cooperating brokers

4
Q

Describe the role of the listing broker during the closing process.

A

The role of the listing broker is to ensure that the closing occurs on time and that all documents necessary to the closing are accurately and timely produced

5
Q

When a property goes under contract, what additional checklists might be generated?

A

When a property goes under contract, that event then generates more checklists: inspections to be ordered, disclosures to be made, title report to be inspected, etc.

6
Q

Explain what a checklist is and does.

A

They are quick and simple tools aimed to buttress the skills of expert professionals

7
Q

In a real estate closing company, a checklist will usually provide places for what important information?

A

The checklist will generally provide a place to check off the item received and the initials of the person responsible

8
Q

Name five items covered in a Residential Real Estate Closing Checklist.

A
Closing Date 
Seller's exact names   
Buyer's exact names
Broker's names
Commission
(There are many more)
9
Q

Name three forms required for loan application

A
Permission to Request Credit Report 
Uniform Residential Loan Application
Loan Estimate
Verification of Employment (VOE)
Verification of Deposit (VOD)
10
Q

Define Loan Estimate.

A

An itemized list of all costs related to obtaining and closing on a mortgage loan.

11
Q

Name three items required on most loan applications.

A

Social Security card & driver’s license
Residence address for past 2 years
Employment for past 2 years
Gross monthly income (includes Social Security, alimony, child support, pension, etc)
Name, address, account number, minimum monthly payment & balance due for all installment loans, charge accounts, student loans, car loans and other mortgage loans (including any co-signatures on loans)

12
Q

Name the three major credit reporting companies.

A

Experian, Equifax, and Trans Union

13
Q

RESPA applies to what types of purchases?

A

Of residential property – that is, one-to-four family homes, cooperatives and condominiums
Involving first or second mortgages
Financed by a federally-related loan

14
Q

What does RESPA require lenders to give to borrowers?

A

The correct figures pertaining to their closing costs.

15
Q

RESPA does not apply to what kinds of loans?

A

Seller-financed loans or loan assumptions (unless the lender has changed the terms of the assumed loan or charges more than $50 for the assumption).

16
Q

RESPA specifically prohibits what action?

A

RESPA specifically prohibits any payment or receiving of fees or kickbacks when a service has not been rendered

17
Q

The listing broker represents the seller and has responsibility for exerting reasonable efforts to complete the sale of the property

A

This includes assisting the seller with completing all the seller’s obligations between the time the contract is signed and the closing occurs, as well as post-closing activities.

18
Q

The brokers who earn a split of the commission are called

A

Cooperating brokers

19
Q

Depending on where and with whom you practice

A

the business of real estate is a checklist-driven activity.

20
Q

When a property goes under contract, that event then generates

A

(or should generate) more checklists: inspections to be ordered, disclosures to be made, title report to be inspected, etc.

21
Q

A checklist is not a set of step-by-step instructions. Rather,

A

they are quick and simple tools aimed to buttress the skills of expert professionals.

22
Q

In a standard real estate transaction,

A

it may make sense to have three or more checklists, each to be reviewed at predetermined dates after the execution of a contract and prior to closing

23
Q

Real estate closing companies will use a checklist to make sure

A

all details of the closing have been covered and are in house ready for the buyers and sellers to sign. This checklist will generally provide a place to check off the item received and the initials of the person responsible.

24
Q

A number of forms must be filled out and signed during the loan application. These will include the following:

A
Permission to Request Credit Report
Uniform Residential Loan Application
Good Faith Estimate (GFE)
Truth in Lending Statement (TIL)
Verification of Employment (VOE)
Verification of Deposit (VOD)
25
Q

The Loan Estimate

A

is an itemized list of all costs related to obtaining and closing on a mortgage loan.

26
Q

TRID

A

regulations require the lender to provide the Loan Estimate to the borrower within 3 days after application.

27
Q

The following information is required on most loan applications. It speeds up the process if the applicant brings all of this information to the initial interview (1):

A

Social Security card & driver’s license
Residence address for past 2 years
Employment for past 2 years
Gross monthly income (includes Social Security, alimony, child support, pension, etc.)

28
Q

The following information is required on most loan applications. It speeds up the process if the applicant brings all of this information to the initial interview (2):

A

Name, address, account number, minimum monthly payment & balance due for all installment loans, charge accounts, student loans, car loans and other mortgage loans (including any co-signatures on loans)
Name, address, account number and balance on all checking or savings accounts, stocks or bonds
Past 30 days pay stubs
Past 2 years W-2 forms

29
Q

After completion of the loan application

A

the next step is to forward the information to the processor. The processor will then proceed to package the loan for submission to an underwriter.

30
Q

Lenders today generally request a

A

tri-merge credit report, including credit scores. This report contains credit information from the three major credit repositories - Experian, Equifax, and Trans Union.

31
Q

RESPA requires

A

that the parties to certain transactions receive the correct figures pertaining to their closing costs.

32
Q

RESPA applies to purchases:

A

Of residential property – that is, one-to-four family homes, cooperatives and condominiums
Involving first or second mortgages

33
Q

Financed by a federally-related loan

A

that is, loans that are insured by a federal agency, those that are insured or guaranteed by VA or FHA, HUD-administered loans, or those that will be sold to Fannie Mae, Freddie Mac or Ginnie Mae