National Real Estate Exam Quiz: Apply Loan Qualification Concepts

What this quiz covers

This quiz focuses on Apply Loan Qualification Concepts, giving you a quick way to practice the rules, question types, and explanations that matter most for National Real Estate Exam.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

Question 1

1. 28% front-end and 36% back-end ratios maximum
2. 31% front-end and 43% back-end ratios maximum (correct answer)
3. 25% front-end and 33% back-end ratios maximum
4. 35% front-end and 50% back-end ratios maximum

Question 2

1. Charge fees when borrowers pay off loans early (correct answer)
2. Increase interest rates for late payment histories
3. Require additional collateral for loan modifications
4. Extend loan terms during economic downturns

Question 3

1. 12% LTV, because $35,000 equity ÷ $280,000 equals 0.125.
2. 85% LTV, because $238,000 ÷ $280,000 equals 0.85.
3. 88% LTV, because $245,000 ÷ $280,000 equals 0.875. (correct answer)
4. 92% LTV, because $245,000 ÷ $265,000 equals 0.92.

Question 4

1. $375,000 minimum appraised property value required (correct answer)
2. $360,000 minimum appraised property value required
3. $350,000 minimum appraised property value required
4. $400,000 minimum appraised property value required

Question 5

1. $2,240
2. $3,440 (correct answer)
3. $2,800
4. $4,640

Question 6

1. $833.33 (correct answer)
2. $1,000.00
3. $416.67
4. $625.00

Question 7

1. Increase the interest rate during periods of inflation
2. Demand immediate payment of the entire loan balance (correct answer)
3. Reduce monthly payments during financial hardship periods
4. Transfer the mortgage to another qualified borrower

Question 8

1. 15%
2. 10%
3. 20% (correct answer)
4. 25%

Question 9

1. Title insurance
2. Hazard insurance (correct answer)
3. Private mortgage insurance
4. Liability insurance

Question 10

1. PITI plus credit cards and auto loans
2. Principal, interest, taxes, and insurance only (correct answer)
3. All monthly debt obligations and utilities
4. PITI plus HOA fees and maintenance costs

Question 11

1. Refinancing the property without lender approval and consent
2. Transferring the property without paying off the loan (correct answer)
3. Making additional principal payments to reduce loan balance
4. Obtaining a second mortgage or home equity line

Question 12

1. Borrower's credit score and payment history
2. Debt-to-income ratios for monthly obligations
3. Employment history and income verification
4. Property's proximity to schools and shopping (correct answer)

Question 13

1. VA loans guaranteed by the Department of Veterans Affairs
2. FHA loans insured by the Federal Housing Administration (correct answer)
3. USDA loans for rural property development financing
4. Conventional loans with private mortgage insurance coverage

Question 14

1. When the property is located in a designated flood zone (correct answer)
2. When the loan amount exceeds $417,000 for conforming loans
3. When the borrower's down payment is less than 20%
4. When the property is more than 50 years old

Question 15

1. 0.25% to 0.75% of the outstanding loan balance
2. 0.50% to 1.50% of the outstanding loan balance (correct answer)
3. 1.00% to 2.00% of the outstanding loan balance
4. 1.50% to 2.50% of the outstanding loan balance

Question 16

1. 580 minimum credit score for most lenders
2. 620 minimum credit score for most lenders (correct answer)
3. 640 minimum credit score for most lenders
4. 660 minimum credit score for most lenders

Question 17

1. 85% (correct answer)
2. 75%
3. 80%
4. 90%

Question 18

1. 15%
2. 10%
3. 20% (correct answer)
4. 25%

Question 19

1. Maintain adequate hazard insurance throughout the loan term (correct answer)
2. Purchase life insurance equal to the loan balance
3. Obtain disability insurance for payment protection
4. Carry liability insurance for injury claims

Question 20

1. An acceleration clause requiring immediate full payment
2. A due-on-sale clause preventing unauthorized transfers (correct answer)
3. A prepayment penalty clause for early loan payoff
4. An assumable mortgage clause allowing buyer assumption