Escrow & Title
A Virginia buyer's lender requires title insurance before funding the loan. Which policy does the lender require?
AAn owner's title insurance policy
BA lender's (mortgagee's) title insurance policy✓ Correct
CA homeowner's warranty policy
DBoth owner's and lender's policies simultaneously
Explanation
Lenders require a lender's (mortgagee's) title insurance policy to protect their security interest up to the loan amount. The owner's policy (protecting the buyer's equity) is separate and optional but highly recommended.
People Also Study
Related Virginia Questions
- An owner's title insurance policy in Virginia protects:Escrow & Title
- A lender's title insurance policy in Virginia protects:Finance
- An owner's title insurance policy in Virginia is issued for which amount?Escrow & Title
- A Virginia property closes on June 1. The buyer's lender requires prepaid interest from June 1 to July 1 (30 days). The loan is $400,000 at 6%. How much prepaid interest is collected?Real Estate Math
- A Virginia property is appraised at $450,000. The lender requires an LTV of 80%. What is the maximum loan amount?Real Estate Math
- A Virginia title insurance policy that protects the lender's interest against title defects is called a(n):Escrow & Title
- A Virginia property owner wants to use their property as collateral for a loan. The lender takes a security interest in the real property. This is evidenced by a:Escrow & Title
- A Virginia lender requires private mortgage insurance (PMI) on a conventional loan. PMI is typically required when the loan-to-value (LTV) ratio exceeds:Finance
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Math Concepts
Study This Topic
Practice More Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Virginia Quiz →