A lender's appraisal of a property for a residential mortgage must be performed by:
Why A state-licensed or state-certified appraiser selected by the lender Is Correct
Answer B: A state-licensed or state-certified appraiser selected by the lender
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
People Also Study
Related Alabama Questions
- An appraisal conducted for a federally related loan transaction must be performed by a:Property Valuation
- In Alabama, an appraisal for a federally related transaction (such as an FHA or conventional bank loan) must be performed by:Property Valuation
- Under Alabama mortgage law, a lender's right to demand full loan repayment if the property is sold is called a(n):Finance
- A lender requires a home appraisal primarily to:Finance
- What is the primary purpose of 'private mortgage insurance' (PMI) from the lender's perspective?Finance
- Which federal law requires lenders to provide a Loan Estimate to mortgage applicants within 3 business days of application?Finance
Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →