Financing Quiz

When a purchaser enters into a loan agreement with a lender, the lender requires two things: A mortgage and a deed of trust.

A "due-on sale clause" is a clause that states that, should the real property securing the loan obligation be sold, the total amount outstanding on the loan becomes immediately due.

Mutual savings banks are a major source of construction loans, short-term loans, and home improvement loans.

Like commercial banks, savings and loan associations are either federally or state chartered.

Mortgage brokers, are licensed individuals who act as middlemen in financing transactions.

The parties to a mortgage are the mortgagor (the borrower) and the mortgagee (the lender).

A deed of trust is sometimes referred to as a mortgage trust deed or trust deed.

Generally, the foreclosure process is faster and the procedures are less complex under a deed of trust than under a mortgage instrument.

Conventional lenders usually charge a loan origination fee to process the loan application, normally 3.5% of the loan amount.

The money from an FHA mortgage is given to borrowers by the Federal Housing Administration.

The certificate of eligibility and the certificate of reasonable value, are part of the requirements for those eligible veterans applying to a VA loan.

The loan commitment is one of the documentation borrower should have ready at the initial interview with a loan officer.

FIFU, FinCEN, and MBA are the three mayor secondary lenders.

A promissory note is signed only by the maker and usually is not witnessed, notarized, or recorded.

The parties to the promissory note are the borrower, referred to as the maker, and the lender, referred to as the payee or holder.