Under RESPA, what is the purpose of the Closing Disclosure provided to Delaware homebuyers?
Why To provide the buyer with an itemized list of all closing costs, loan terms, and cash required at closing at least 3 business days before closing Is Correct
Answer B: To provide the buyer with an itemized list of all closing costs, loan terms, and cash required at closing at least 3 business days before closing
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.
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Key Terms to Know
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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.
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.
Math Concepts
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