#1
Which of the following is a common type of real estate financing?
Mortgage
Stocks
Mutual Funds
Savings Account
#2
What is private mortgage insurance (PMI) in real estate financing?
Insurance for landlords
Insurance for commercial properties
Insurance protecting the lender in case of borrower default
Insurance for property tax payments
#3
What is a 'down payment' in real estate financing?
An additional payment made to lower the interest rate
A payment made at the beginning of a loan term
A payment made to the seller at closing
A payment made to secure a property before closing
#4
What is the Debt-Service Coverage Ratio (DSCR) used for in real estate financing?
To assess the profitability of a property
To determine the amount of equity in a property
To evaluate a borrower's ability to cover loan payments
To calculate property taxes
#5
What is the purpose of a 'pre-approval' in real estate financing?
To confirm the buyer's intent to purchase a property
To assess the buyer's creditworthiness and determine a tentative loan amount
To secure financing for a specific property
To finalize the purchase agreement
#6
What does LTV stand for in real estate financing?
Loan Term Verification
Loan to Value
Lender's Trust Value
Lease Term Valuation
#7
What is a 'balloon payment' in real estate financing?
A payment made with balloons as collateral
A large final payment at the end of a loan term
A payment made with a balloon-shaped check
An installment payment for a property with a balloon design
#8
In real estate, what does the term 'amortization' refer to?
The process of increasing the value of a property
The process of spreading out loan payments over time
The process of decreasing the size of a property
The process of transferring ownership of a property
#9
Which of the following is NOT a type of real estate investment?
REIT
Mutual Fund
Crowdfunding
Fix and Flip
#10
What does the term 'underwriting' mean in real estate financing?
The process of inspecting a property
The process of assessing borrower creditworthiness and risk
The process of obtaining insurance for a property
The process of advertising a property for sale
#11
What is a 'cap rate' in real estate investment?
The maximum interest rate on a loan
The rate of return on a property based on its income
The rate at which property values increase
The rate at which rent is increased annually
#12
What is the main purpose of a title search in real estate financing?
To determine the market value of the property
To verify the authenticity of the seller
To ensure there are no liens or encumbrances on the property
To check the availability of financing options
#13
What is the role of an escrow account in real estate transactions?
To hold funds until closing
To pay property taxes and insurance
To distribute funds to the seller
All of the above
#14
What does the term 'appraisal' mean in real estate?
The process of assessing a property's value
The process of securing financing for a property
The process of marketing a property
The process of transferring ownership of a property
#15
What is the role of a 'title insurance' policy in real estate transactions?
To ensure the title is marketable
To provide insurance against title defects or claims
To verify the authenticity of the property's title
To transfer ownership of the title
#16
What is the purpose of a 'quitclaim deed' in real estate?
To transfer ownership of a property with a clear title
To transfer ownership without making any warranties or guarantees
To transfer ownership with a guarantee of no liens or encumbrances
To transfer ownership only to family members