FinanceIntermediateDelaware Exam
What is 'seasoning' in the context of Delaware mortgage lending?
AThe time of year when mortgage rates are lowest
BThe length of time a borrower has held funds in an account, used to verify the source of down payment fundsCorrect
CThe age of a mortgage before it may be refinanced
DThe period during which a borrower must occupy the property before renting it out
Why The length of time a borrower has held funds in an account, used to verify the source of down payment funds Is Correct
Answer B: The length of time a borrower has held funds in an account, used to verify the source of down payment funds
In mortgage underwriting, 'seasoning' refers to the length of time funds have been in a borrower's account. Lenders typically require down payment funds to be 'seasoned' (held for 60-90 days) to verify they are not borrowed.
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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