Mortgage Exam Questions and Answers
Graded A+
Your client, who has a Beacon Score of 640, wishes to purchase a property valued
at $450,000 using a down payment of $20,000. Assuming that your client meets all
of the other Lender's guidelines, what statement would best reflect this scenario?
Select one:
a. Your client must provide a down payment of at least $22,500 to qualify
b. Your client must provide a down payment of at least $90,000 to qualify
c. Your client must have at least a 650 Beacon Score to qualify
d. Your client qualifies based on this down payment and Beacon Score - Correct
answer-Your client must provide a down payment of at least $90,000 to qualify.
B is the correct answer since a credit score under 650 requires a down payment of
at least 20%,
which is $90,000 ($450,000 x 20% = $90,000).
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,Your client currently has a mortgage with an outstanding balance of $350,000. This
client wishes to refinance his home by increasing this mortgage to $405,000. If the
value of his home is appraised at $425,000, and assuming that your client meets all
of the other Lender's guidelines what statement would best reflect this scenario?
Select one:
a. Your client qualifies based on this mortgage amount
b. Your client would qualify for a maximum increase of $53,750
c. Your client would qualify for a maximum increase of $32,500
d. This lender does not offer refinancing - Correct answer-Answer: C
This lender does provide refinancing up to 90%. Therefore 90% of $425,000 is
$382,500 less
the outstanding balance of $350,000 equals an increase of $32,500.
The correct answer is: Your client would qualify for a maximum increase of
$32,500
Your client, who cannot prove her income, would like to obtain 90% LTV
financing to purchase a single family dwelling. Her Beacon Score is 678 and she is
requesting a 2 year term with a rate not exceeding 6.7%. Given this case study,
what would you tell your client?
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,Select one:
a. This Lender does not offer this requested product
b. She must increase her down payment to 15%
c. She must have a Beacon Score of at least 680
d. She does not qualify for the requested rate - Correct answer-Answer: A
Because the lender doesn't have a 2 year product no other option can be correct.
The correct answer is: This Lender does not offer this requested product
Your client wishes to obtain a mortgage in the amount of $250,500. Given this
Lender's program and assuming that your client meets all of the other Lender's
guidelines, what statement would best reflect this scenario?
Select one:
a. Your client must pay a Lender's fee of $5,000 from his own funds on closing
b. Your client must pay a Lender's fee of $5,010 from his own funds on closing
c. Your client must pay a Lender's fee which may be included in the mortgage
d. Your client need not pay a Lender's fee if his Beacon Score is over 650 - Correct
answer-Answer: C
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, Although the amount of the Lender's fee in b is correct, while a is not, the client
does not have to
pay it from his own funds on closing.
D is incorrect because all Borrowers must pay this Lender's fee.
The correct answer is: Your client must pay a Lender's fee which may be included
in the mortgage
Your client would like to refinance his home by increasing his current mortgage to
$285,700. Since his home is appraised at $336,000 and his Beacon Score is 632, he
would qualify for:
Select one:
a. A rate of 7.5% because of the loan to value and Beacon Score
b. A rate of 7.3% because of the loan to value and Beacon Score
c. A rate of 7.2% because of the loan to value and Beacon Score
d. It depends, since you do not know if this is Stated or Full Doc - Correct answer-
Answer: A
A is correct because 285,700/336,000 = 85.03% LTV and coupled with a Beacon
Score of 632
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Graded A+
Your client, who has a Beacon Score of 640, wishes to purchase a property valued
at $450,000 using a down payment of $20,000. Assuming that your client meets all
of the other Lender's guidelines, what statement would best reflect this scenario?
Select one:
a. Your client must provide a down payment of at least $22,500 to qualify
b. Your client must provide a down payment of at least $90,000 to qualify
c. Your client must have at least a 650 Beacon Score to qualify
d. Your client qualifies based on this down payment and Beacon Score - Correct
answer-Your client must provide a down payment of at least $90,000 to qualify.
B is the correct answer since a credit score under 650 requires a down payment of
at least 20%,
which is $90,000 ($450,000 x 20% = $90,000).
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Your client currently has a mortgage with an outstanding balance of $350,000. This
client wishes to refinance his home by increasing this mortgage to $405,000. If the
value of his home is appraised at $425,000, and assuming that your client meets all
of the other Lender's guidelines what statement would best reflect this scenario?
Select one:
a. Your client qualifies based on this mortgage amount
b. Your client would qualify for a maximum increase of $53,750
c. Your client would qualify for a maximum increase of $32,500
d. This lender does not offer refinancing - Correct answer-Answer: C
This lender does provide refinancing up to 90%. Therefore 90% of $425,000 is
$382,500 less
the outstanding balance of $350,000 equals an increase of $32,500.
The correct answer is: Your client would qualify for a maximum increase of
$32,500
Your client, who cannot prove her income, would like to obtain 90% LTV
financing to purchase a single family dwelling. Her Beacon Score is 678 and she is
requesting a 2 year term with a rate not exceeding 6.7%. Given this case study,
what would you tell your client?
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Select one:
a. This Lender does not offer this requested product
b. She must increase her down payment to 15%
c. She must have a Beacon Score of at least 680
d. She does not qualify for the requested rate - Correct answer-Answer: A
Because the lender doesn't have a 2 year product no other option can be correct.
The correct answer is: This Lender does not offer this requested product
Your client wishes to obtain a mortgage in the amount of $250,500. Given this
Lender's program and assuming that your client meets all of the other Lender's
guidelines, what statement would best reflect this scenario?
Select one:
a. Your client must pay a Lender's fee of $5,000 from his own funds on closing
b. Your client must pay a Lender's fee of $5,010 from his own funds on closing
c. Your client must pay a Lender's fee which may be included in the mortgage
d. Your client need not pay a Lender's fee if his Beacon Score is over 650 - Correct
answer-Answer: C
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, Although the amount of the Lender's fee in b is correct, while a is not, the client
does not have to
pay it from his own funds on closing.
D is incorrect because all Borrowers must pay this Lender's fee.
The correct answer is: Your client must pay a Lender's fee which may be included
in the mortgage
Your client would like to refinance his home by increasing his current mortgage to
$285,700. Since his home is appraised at $336,000 and his Beacon Score is 632, he
would qualify for:
Select one:
a. A rate of 7.5% because of the loan to value and Beacon Score
b. A rate of 7.3% because of the loan to value and Beacon Score
c. A rate of 7.2% because of the loan to value and Beacon Score
d. It depends, since you do not know if this is Stated or Full Doc - Correct answer-
Answer: A
A is correct because 285,700/336,000 = 85.03% LTV and coupled with a Beacon
Score of 632
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