Loan Signing Agent Exam Questions with 100% Correct
Answers | Verified | Updated 2024
Borrower (Mortgagor)
An individual who applies for and receives funds in the form of a loan and is obligated to
repay the loan in full under the terms of the loan.
Title
The document that gives evidence of ownership of a property. It also indicates the rights
of ownership and possession of the property.
Refinancing
The process of paying off one loan with the proceeds from a new loan secured by the
same property.
Escrow Company
A licensed neutral third party that distributes legal documents and funds on behalf of a
buyer and seller.
Escrow Agent
A person with fiduciary responsibility to the buyer and seller, or the borrower and lender,
to ensure that the terms of the purchase/sale or loan are carried out.
Title Company
Makes sure that a piece of real estate is legitimate, then issues title insurance for that
property which protects both the lender and the owner from lawsuits as a result of title
disputes.
Title Insurance
Protects a lender against any title dispute that may arise regarding a particular property.
Lender
Bank that is lending the money.
Deed of Trust & Rider
It records who actually owns the property: e.g. Jane Doe and John Doe, husband and
wife as joint tenants
It records the amount the borrower is borrowing from the bank, also known as the lien
amount
It records who is lending the money, also known as the lien holder
It records the legal description of the property. We all know the street address to a
property - e.g. 123 Springdale Avenue. The legal description is how the county
recognizes the property location via the lot boundaries and lot location within the county.
Last but not least, it states the rules and regulations to which the new property owner
has to abide. Simply amendments to the deed of trust - something the lender wants to
add to the deed.
Principal
The amount of debt, not counting interest, left on a loan.
Note
Fancy way of saying "contract".
Interest Rate
What the borrower agrees to pay back on the money that is borrowed from the bank.
Fixed Rate Note
Answers | Verified | Updated 2024
Borrower (Mortgagor)
An individual who applies for and receives funds in the form of a loan and is obligated to
repay the loan in full under the terms of the loan.
Title
The document that gives evidence of ownership of a property. It also indicates the rights
of ownership and possession of the property.
Refinancing
The process of paying off one loan with the proceeds from a new loan secured by the
same property.
Escrow Company
A licensed neutral third party that distributes legal documents and funds on behalf of a
buyer and seller.
Escrow Agent
A person with fiduciary responsibility to the buyer and seller, or the borrower and lender,
to ensure that the terms of the purchase/sale or loan are carried out.
Title Company
Makes sure that a piece of real estate is legitimate, then issues title insurance for that
property which protects both the lender and the owner from lawsuits as a result of title
disputes.
Title Insurance
Protects a lender against any title dispute that may arise regarding a particular property.
Lender
Bank that is lending the money.
Deed of Trust & Rider
It records who actually owns the property: e.g. Jane Doe and John Doe, husband and
wife as joint tenants
It records the amount the borrower is borrowing from the bank, also known as the lien
amount
It records who is lending the money, also known as the lien holder
It records the legal description of the property. We all know the street address to a
property - e.g. 123 Springdale Avenue. The legal description is how the county
recognizes the property location via the lot boundaries and lot location within the county.
Last but not least, it states the rules and regulations to which the new property owner
has to abide. Simply amendments to the deed of trust - something the lender wants to
add to the deed.
Principal
The amount of debt, not counting interest, left on a loan.
Note
Fancy way of saying "contract".
Interest Rate
What the borrower agrees to pay back on the money that is borrowed from the bank.
Fixed Rate Note
