Homebuyer Education Learning Check

Module #4 - Financing & the Loan Process

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* 1. Name

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* 2. Phone Number

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* 3. Email

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* 4. The fee paid to the lender that covers the processing (creation) of the loan application (select one):

Escrow fee

TOM fee

Appraisal fee

Origination fee

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* 5. The total cost of the mortgage described as a percentage of the loan (takes into account base interest rate, points, origination fee, and mortgage insurance):

ARM

APR

Appraisal

Amortization

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* 6. Homewise offers a conventional loan through Fannie Mae. Listed below are other types of loans available from your local bank or credit union. Which of the following is not a real loan product? (pick one):

FHA

IRA

USDA

VA

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* 7. True or False: Someone offers you a 30-year fixed rate Mortgage Loan with a 3% interest rate. Your APR is 7.5%. This is a great loan with a fair APR.

True

False

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* 8. Federal law requires a lender to give or mail you the following within three days of your application for a loan: A copy of the booklet “Your Home Loan Toolkit” and (select one):

A copy of the appraisal of the home

A copy of the purchase contract

Your loan estimate of loan costs

A copy of your homeowners insurance policy

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* 9. True or False: On your loan estimate you notice that you are prepaying the first 12 months of your homeowners insurance premium as part of your prepaid closing costs. This is not a normal cost and you should be worried.

True

False

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* 10. If you move into your home on October 15th, your first mortgage payment will be due (select one):

In order to get the keys, you give your first payment

Within seven days of moving in

November 15th

December 1st

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* 11. True or False: An ARM (Adjustable Rate Mortgage) allows you ask your lender to adjust and lower the interest rate of your mortgage, as your credit score goes up.

True

False