Chapter 8 Vocab

Question 1

Appraisal

Answer 1

-An opinion of value stated by a professional appraiser

Question 2

Closing

Answer 2

When the loan proceeds are distributed and a deed to the property is recorded

Question 3

Closing Disclosure

Answer 3

must be received no later than 3 business days before consumption of the loan

Question 4

Credit

Answer 4

-Any item that is payable to any party

Question 5

Credit Report

Answer 5

• Listing of a borrowers credit history including
• amount of debt
• record of repayment

Question 6

Credit scoring

Answer 6

-Gives lenders a fast measurement of a borrowers ability to repay a loan

Question 7

Debt

Answer 7

-Any charge payable to any party

Question 8

Escrow

Answer 8

-Use of a disinterested third party to hold documents and funds when a property is being transferred

Question 9

FICO Score

Answer 9

• Most widely used credit scoring bureau

- Fair Isaac and Company

Question 10

Good Faith Estimate

Answer 10

Document required by RESPA

-Lender must state all costs of the loan to the borrower before closing

Question 11

Pre-Approved

Answer 11

a letter stating the buy is already approved and qualifies for the loan

Question 12

Pre-Qualified

Answer 12

an opinion stating the buyer should be able to qualify for the loan

Question 13

Settlement Statement

Answer 13

-Listing of all the amounts involved in a transaction.

Question 14

RESPA

Answer 14

Real Estate Settlement Procedures Act

-applies sales of 1-4 unit properties that involve financing