All of the following are considered business assets, EXCEPT: Which document most closely resembles a deed? statement.

(Round To Two Decimal Places.) The property possession date is not necessarily the same date as the closing and will be specified in the real estate contract.

Watch out for these key indicators of potential mortgage fraud. According to TILA, the final APR is considered accurate if it does not vary above or below the APR initially disclosed on the Loan Estimate by which of the following: A.

A. In fact, “Mortgage notes are often associated with sales of property using owner financing," says Alan Noblitt, owner of Seascape Capital, based in San Diego. Responding to such requests quickly will help speed your mortgage application. Which of the following correctly lists the taxes that the buyer must typically pay when purchasing a home with a new mortgage? Within the scope of an affiliated business relationship, which of the following could fulfill the definition of a person: All of the following would be acceptable means for one to receive compensation for a referral for settlement services, except: A.

Ø A buyer and seller signed a purchase contract on a property. Alison Victoria Reveals the ‘Future of Kitchens’: Will It Catch On? The final step is closing day. D. Funding of the loan.

preparing financial statements as required by accrual accounting is (a) Debit the Seller and Credit the Buyer $5,956.85.

b.Under the accrual basis of accounting, a company records only Legitimate fees or wages for services actually performed.

is best analyzed using: a.net cash flows from operating activities. transactions involving increases or decreases of cash. They can also be purchased in shares of mortgage bundles through real estate investment trusts or other similar products.

Which of the following statements regarding abstract continuation and title insurance in a real estate closing is correct? B. Introducing Cram Folders! (c) It must be accounted for in the broker's statement. B. (b) Over 27.5 years for non-residential properties, and 39 years for residential properties. Which of the following is the effect of this

For the best experience, please enable cookies when using our site. Here’s an example from Fannie Mae’s underwriting guidelines. As you can see, your mortgage note is an essential contract and an important legal document, so if you’re buying a home for the first time, make sure you put your mortgage note in a safe place where you know you’ll be able to find it. The buyer has a 3/27 loan. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. accounting?

than the accounting cycle for a double-entry accounting system.

Use LEFT and RIGHT arrow keys to navigate between flashcards; Use UP and DOWN arrow keys to flip the card; What is the purpose of the closing statement? B. When an investment or business property is sold for an amount greater or lesser than the amount paid. Our experts have been helping you master your money for over four decades.

accounting.

Our editorial team does not receive direct compensation from our advertisers. Revised disclosures may not be delivered on the same day as the Closing Disclosure.

Many banks closely follow underwriting guidelines from Fannie Mae and Freddie Mac, the giant government-sponsored enterprises that keep the U.S. mortgage market running smoothly.

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The underwriter might assess your mortgage application manually or run it through a software program to make the determination. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. A. (d) Transferring shares of stock or limited partnership interests. Which of the following statements best describes business brokerage? A borrower can use the yield spread premium from the loan in which of the following ways: Which party regulates the margin in an adjustable rate mortgage: When a loan is issued, an MLO must check the borrower’s assets according to which of the following: A. Please upgrade to Cram Premium to create hundreds of folders! d.Under the accrual basis of accounting, revenue is recorded b.The Integrated Financial Statement Framework is used to focus If the provider of the settlement service is an entity other than the lender, the AfBA disclosure must be provided at the time of the referral, or before, if the borrower so requests. It does not appear in the broker's statement. D.    The borrower and lender must honor the original closing disclosure that was provided. Cash $50,000 Accounts Receivable $130,000 Inventories $210,000 Prepaid Assets $15,000 Current Liabilities $200,000 A.0.98 B.2.50 C.0.90 D.1.35 The Ability Of A Company To Pay Debts As They Become Due Is Best Analyzed Using: A.net Cash Flows From Operating Activities. (b) An income producing business or property. (b) The economic soundness of the investment, (c) The amount of the tax shelter benefitting the investor. a.The Integrated Financial Statement Framework is more complex (a) Over 27.5 years for residential properties and 39 years for non-residential properties. Generally speaking, what is the most important factor underlying good investment decisions? (a) It must be accounted for in the broker's statement. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. The closing is when the bank funds your loan and pays the selling party in exchange for the title to the property. (d) Over 39 years for all investment properties.

That’s why a title company performs a title search to make sure the property can be transferred. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.

Introducing Cram Folders! b) they should not be considered in residential property income, c) they are use to pay for normal maintenance of the property, d)they are a noncash expense that is used to replace short-lived components that wear out from time to time.

c.The income statement and the balance sheet are unaffected.

called the: Which of the following is true of the Integrated We do not include the universe of companies or financial offers that may be available to you. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Calculate the documentary stamp tax on the deed.

Which tax will not be required in a transaction where the purchaser assumes an existing mortgage? Be prepared to have your income verified and provide other financial documentation such as tax returns and bank account statements. transaction on Atlas's financial statements?

D.    A referral fee of not more than 10% of the cost of services rendered. c.There is a change in the mix of assets in the balance

What is the amount of documentary tax on the note that must be paid? Which entry would normally appear as a debit on the buyer's statement? According to the Fair Credit Reporting Act, all of the following statements are true EXCEPT If an applicant is declined for an insurance policy, he or she has not right to know what was in the report 11.

Also, look out for any suspicious payroll deductions that could indicate additional obligations, such as a loan or child support.

(b) It determines the amount of taxes due on income-producing property. The right of rescission applies only to the refinancing of a mortgage. Which of the following is the effect of The purpose of the mortgage or deed of trust is to provide security for the loan that's evidenced by a promissory note.

2016. B.    TILA requires that the APR be disclosed to a consumer when they call for an interest rate quote. Bankrate.com is an independent, advertising-supported publisher and comparison service.

What is the operating expense ratio of a property that has an effective gross income of $90,000 and a net operating income of $40,000? B. by $1,250 in the statement of cash flows. (c) Over 27.5 years for all investment properties. You are reviewing the HUD 1 Uniform Closing Statement (for property not located in Dade County) and note that the documentary tax on the deed is $6,000. The new Closing Disclosure form must be delivered to the borrower in which of the following time frames: A. 8 Myths About Renting You Should Stop Believing Immediately, 6 Ways Home Buyers Mess Up Getting a Mortgage, 6 Reasons You Should Never Buy or Sell a Home Without an Agent, Difference Between Agent, Broker & REALTOR, Real Estate Agents Reveal the Toughest Home Buyers They’ve Ever Met, The 5 Maintenance Skills All Homeowners Should Know, Click for complete coronavirus coverage from realtor.com, 5 Most Common Questions About Mortgages—Answered, 5 Things Your Mortgage Broker Wishes You Knew, Learn Your Home Loan Options Before You Decide to Buy, Read our stress-free guide to getting a mortgage, Your Essential Fall Maintenance Checklist: 8 Things You Really Should Do Before the First Frost, ‘Nobody Wants It’: Colorado Home at the Center of Netflix Murder Documentary Hangs in Limbo.

C.    There are exceptions such as a bona fide personal financial emergency, like imminent foreclosure. When an asset is pledged as security for a long-term

(d) It is entered on the statement as a debit. If an investor earns a lower rate of return on capital invested than the rate paid on borrowed funds, what type of leverage is indicated? Which of the following is not considered an operating expense for appraisal or income tax purposes?