Champions Principles Of Real Estate 2 Questions And Answers 100% Verified.

Champions Principles Of Real Estate 2 Questions And Answers 100% Verified. appraisal - correct answer. value of a property maybe affected by social, economic, govt and environmental influences Loan-to-Value Ratio (LTV) - correct answer. The percentage of value or sales price that a lender is willing to finance. limited appraisal report - correct answer. exterior only/drive by inspection. deemed as low risk loan highest and best use of property - correct answer. legal use that gives the greatest return Principal of Contribution - correct answer. cost does not equal value Residential Mortgage Loan Originators (RMLO) - correct answer. Must be certified licence holders and is mandated by the SAFE ACT (TX dept of savings and mortgage lending) Principle of Anticipation - correct answer. purchase price is affected by the expectation of future appeal and benefits Principal of Substitution - correct answer. value of a commodity is influenced by the cost of acquiring subsitute or comparable item Principal of progression - correct answer. value of properties around yours goes up; so does yours Principal of Regression - correct answer. The Value of more expensive home placed in a neighborhood of less expensive homes will drop in value Market Value - correct answer. the most probable price a property should bring in a competitive and open market under fair conditions requisit to a fair sale. appraisal process - correct answer. The value of a property may be affected by social, economic, governmental and environmental influences. An appraiser must always be aware of these influences and possible changes in them that could affect market value. Three approaches to value - correct answer. (1) The Sales Comparison Approach (2) The Cost Approach, (3) The Income Approach. Sales Comparison Approach - correct answer. A value for existing properties method for comparing similar properties to the subject property. this is the best indicator. Market Data Approach - correct answer. aka: sales comparison approach Physical Deterioration - correct answer. Loss of value of a building from its reproduction cost, resulting from wear and tear over time. Functional Obsolescence - correct answer. loss of desirability of the style, layout or function of an element of property over time External Obsolescence - correct answer. Losses of property value caused by forces or conditions beyond the borders of the property. ie. zoning, highways promissary note - correct answer. evidence of a lean. simply a note Foreclosure - correct answer. secured property may be sold ti satisfy the unpaid promissory note. Primary Mortgage Market - correct answer. the loan origination market where borrowers and lenders negotiate mortgage terms funding - correct answer. transferring funds to a title co for disbursement when loan is approved. Servicing - correct answer. The process of collecting loan monthly payments, keeping records and balances, collecting and paying taxes and insurance Equal Credit Opportunity Act - correct answer. federal law passed in 1974. doesn't include: gender or immigration status. consumers are given equal chance to obtain credit. - correct answer. secondary market - correct answer. exists for the purchase and sale of existing mortgages to investors Liquidity - correct answer. provides a steady supply of funds to keep making loans yield - correct answer. represents money earned on an investment Fannie Mae - correct answer. began in 1938. largest investors in home mortgages in the secondary market Freddy Mac - correct answer. began in 1970. purchases mortgages in the secondary market pre approval - correct answer. buyers set more realistic pricing goals, better understanding of ability to pay, avoid showing property buyers cant afford, seller reassured buyer has sufficient income and credit to close the deal (is the best) loan to value ratio - correct answer. % of the lesser appraised value or sale that the lender will lend Private Mortgage Insurance (PMI) - correct answer. Found in conventional loans. type of insurance required when the LTV exceeds 80%. insures the difference government rights In land - correct answer. Police Power Eminent Domain Taxation Escheat police power - correct answer. right of government to regulate and control land. most common example is zoning buffer zone - correct answer. area of land separating one land use from another (single family, apartments and retail) eminent domain - correct answer. right of govt to take private land for public use.