Ree 4202- Exam 2 Sirmans Qs&as

Borrower Qualifications include: {Ans: 1. determining maximum loan amount 2. estimating settlement requirements and costs 3. analyzing credit history 4. calculating effective income 5. estimating monthly housing expense 6. assessing ability to repay mortgages and other liabilities in a timely fashion}Government sponsored insurance {Ans: • FHA insurance - a full insurance program • VA insurance - a partial insurance program}Mortgage Brokers {Ans: -alternative to mortgage bankers -licensed companies that offer mortgages from variety of lenders -can provide borrowers with their best loan options}Procedure {Ans: - No payments more than 30 days late in last 12 months, no payments more than 60 days late in}For FHA approval, lender submits a package containing: {Ans: 1. Mortgage credit analysis worksheet 2. Application for commitment of insurance 3. Copy of sales contract 4. All verifications of deposit 5. All verifications of employment 6. Credit reports 7. Verification of indebtedness 8. Other documents}Default late performance and acceleration {Ans: Once you default all payments interest other fees become due}