Can you help your clients speak real estate?
04/06/2016 | Author: Editorial Staff
Your clients will hear a lot of abbreviations and acronyms when buying, selling, or leasing property ... but can you explain what they all mean? Here are six chances to see how well you know real estate industry lingo.
1. What does PITI stand for?
a. principal, inspection, title insurance, and interest
b. principal, interest, taxes, and insurance
c. property taxes, insurance, title fees, and interest
d. none of the above
2. True or false? The interest rate for an ARM loan remains the same for the life of the loan.
3. What does a borrower’s LTV indicate?
a. his long-term view for the property’s value
b. the expected lifetime value for a property
c. a comparison of the loan amount to the value of the property
d. the Texas-specific value of the loan
4. True or false? You may charge a fee to produce a CMA or BPO for a prospective seller.
5. Which of the following is covered in an HOA’s CC&Rs?
a. the minimum price a buyer must pay for a property
b. rules about property maintenance
c. a process for collecting dues
d. when the board of directors meets
6. True or false? A consumer’s FICO score measures his or her credit risk.
1. b. Remind your buyers to factor these and other expenses, like utilities and maintenance costs, into their budgets when determining the price range they can afford.
2. False. The interest rate for an adjustable-rate mortgage (ARM) changes periodically.
3. c. LTV is a borrower’s loan-to-value ratio.
4. True. The Real Estate License Act and TREC rules permit a broker to charge a fee for providing a comparative market analysis or broker price opinion.
5. b, c, and d. A homeowners association’s covenants, conditions, and restrictions (CC&Rs) are the governing documents that dictate the rules and operation of the HOA.
6. True. The Fair Isaac Corporation issues FICO scores to help lenders determine the likelihood that a borrower will repay a loan.
The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.
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