A Colorado property appraises for $385,000 on a $400,000 purchase contract. The lender will only lend 95% of the appraised value. What is the maximum loan amount?
Why $365,750 Is Correct
Answer A: $365,750
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.
People Also Study
Related Colorado Questions
- A Colorado buyer is getting an FHA loan. The property appraises for $310,000 and the purchase price is $320,000. The maximum FHA loan amount (at 96.5% LTV) is based on:Finance
- In Colorado, a seller's broker who inadvertently discovers that the buyer's lender has a lower pre-approval amount than the contract price should:Agency
- What is the maximum loan amount for a conforming conventional loan in most Colorado counties (2024 baseline)?Finance
- A Colorado broker working as a transaction broker receives confidential information from the buyer about their maximum purchase price. The broker may:Agency
- When a Colorado appraiser concludes a value of $425,000 and the owner's purchase price was $450,000, the appraiser should:Property Valuation
- A property in Colorado sold for $390,000. The buyer paid 5% down. The lender charges 1.5% origination fee on the loan amount. What is the origination fee?Real Estate Math
- The Colorado Real Estate Commission-approved contract for the purchase and sale of residential property is called the:Contracts
- Under Colorado's Contract to Buy and Sell, if a seller accepts an offer and the buyer's loan is denied, the buyer may:Contracts
Key Terms to Know
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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.
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Math Concepts
Study This Topic
Practice More Colorado Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →