In Alaska, a borrower whose credit score drops between the time of loan application and closing may find that the lender:
Why May adjust loan terms, require additional conditions, or decline to fund the loan if creditworthiness has materially changed Is Correct
Answer B: May adjust loan terms, require additional conditions, or decline to fund the loan if creditworthiness has materially changed
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
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Key Terms to Know
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Math Concepts
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