Quiz One

Lenders and Title Information

All answers have been provided by our PLATINUM PARTNERS shown above.
From left to right, Ben Seamon, Kayla Dodd, Brad Chastain and Matt Helton.

Please make sure you enter your first and last name before starting your quiz! Your results will go to the email address you provide here. You will also receive a certificate that you can post on Social Media.
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1. The State of Tennessee “good funds law” says that for buyers bringing OVER $1,000 to closing, acceptable forms of payment are:

This answer supplied by Kayla Dodd with Advance Title. To contact Kayla, CLICK HERE.

1. Wire

2. Personal Check

3. Cashiers Check

4. Both 1 and 3

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2. Is a survey required for a closing in TN?

This answer supplied by Kayla Dodd with Advance Title. To contact Kayla, CLICK HERE.

1. Always

2. Never

3. Only if the seller wants to provide one.

4. Only required if there is an issue or problem with the legal description to the property.

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3. What does the term “simultaneous issue” mean?

This answer supplied by Kayla Dodd with Advance Title. To contact Kayla, CLICK HERE.

1. That title insurance is issued the same day of closing.

2. When there is a lender involved and they require lender’s title insurance, the buyer can add on owners insurance for a minimal cost as long as it’s purchased at closing simultaneously with said lender policy.

3. That the lender gets cheaper title insurance if the owner buys their own policy.

4. That the seller shares the title policy they already have for the property.

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4. True or False: Real estate agents are require to attend their client closings in the State of TN?

This answer supplied by Kayla Dodd with Advance Title. To contact Kayla, CLICK HERE.

1. True

2. False

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5. When the title company talks about the legal description, they are referring to:

This answer supplied by Kayla Dodd with Advance Title. To contact Kayla, CLICK HERE.

1. The address of the property

2. The GIS maps available from the county assessor.

3. The description of the property that is found either on the prior Deed to the property OR provided from a surveyor when a new survey is completed.

4. All of the above

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6. What is the minimum credit score required by lenders for FHA loans?

This answer provided by Brad Chastain with FCM Mortgage. To contact Brad, CLICK HERE.

1. 590

2. 580

3. 520

4. 640

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7. What is an FHA Amendatory Clause?

This answer provided by Brad Chastain with FCM Mortgage. To contact Brad, CLICK HERE.

1. A TAR form Amendment that is used for FHA loans only when a borrower needs to change or amend something in the contract.

2. Signed agreement that allows borrower to cancel contract in the event appraised value does not meet agreed upon sales price, at no penalty or forfeiture of earnest money. It ensures that the home is worth enough to secure the loan.

3. Signed agreement between the buyer and seller stating up front, if the property does not appraise for the contract price, both parties still want to continue with the sale.

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8. Who pays for the termite letter on VA loans.

This answer provided by Brad Chastain with FCM Mortgage. To contact Brad, CLICK HERE.

1. The Lender

2. The Seller

3. The Buyer

4. Buyer or Seller

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9. What does THDA Stand for?

This answer provided by Brad Chastain with FCM Mortgage. To contact Brad, CLICK HERE.

1. Tennessee Home Dealers Association

2. Tennessee Housing Done Affordably

3. Tennessee Homes Doing Arm Loans

4. Tennessee Housing Development Agency

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10. Does Closing Cost Come off the Sales Price of the Home Since Buyers are Paying this Out of Pocket at Closing?

This answer provided by Brad Chastain with FCM Mortgage. To contact Brad, CLICK HERE.

1. Yes, they have already spent the money

2. Yes, because they shouldn't have to pay the money twice

3. No, because closing cost is not part of buying a house, only the down payment.

4. No, closing cost is paid to 3rd party people and the money does not go to the seller.

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11. How long is an FHA appraisal good for?

This answer provided by Matt Helton with One Trust Home Loans. To contact Matt, CLICK HERE.

1. One Year

2. Six Months

3. Eight Months

4. 120 Days

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12. What is Fannie Mae?

This answer provided by Matt Helton with One Trust Home Loans. To contact Matt, CLICK HERE.

1. Fannie Mae is a government-sponsored enterprise (GSE) that purchases mortgage loans from smaller banks or credit unions and guarantees, or backs, these loans on the mortgage market for borrowers

2. Fannie May is also known as the Section 502 Direct Loan Program, this program helps low- and very-low-income applicants buy decent, safe, and sanitary housing in eligible rural areas by providing payment assistance to increase their applicant's repayment ability.

3. Fannie May lets you take the maximum of your total household income and the price you can pay for a home and still qualify for the Great Choice Home Loan program varies by county.

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13. What is MIP and Why Is it Charged?

This answer provided by Matt Helton with One Trust Home Loans. To contact Matt, CLICK HERE.

1. Mortgage Interest Premium, to Collect Interest Up Front before the loan is sold to an Investor

2. Mortgage Interest Premium, to charge the borrower up front so the lender can pay the loan officer

3. Mortgage Insurance Premium, to protect the Lender in case of default.

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14. What does PITI stand for?

This answer provided by Matt Helton with One Trust Home Loans. To contact Matt, CLICK HERE.

1. Principle, Income, Taxes and Insurance

2. Principle, Insurance, Tithing and Indulgence

3. Principle, Interest, Taxes, Insurance

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15. Is child support counted as a debt if the paying spouse has not actually been paying it?

This answer provided by Matt Helton with One Trust Home Loans. To contact Matt, CLICK HERE.

1. No

2. Yes

3. Only if it is over $200.00 per month

4. Only if it is over $300.00 per month

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16. What is an Alta Statement?

This answer provided by Ben Seamon with Bell and Alexander Title. To contact Ben, CLICK HERE.

1. An itemized list of charges that is sent to the borrower within 3 days of loan application.

2. An itemized list of charges that only the borrower will be paying at closing.

3. An itemized list of all of the fees or charges that the buyer and seller will pay during the settlement portion of a real estate transaction.

4. An itemized list of charges that only the seller will be paying at closing.

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17. Can a power of attorney be used if the property is in one state and the POA is from another state?

This answer provided by Ben Seamon with Bell and Alexander Title. To contact Ben, CLICK HERE.

1. Yes, as long as it is notarized and the original is brought to closing.

2. Yes, as long as the person who authorized the POA calls the title company and tells them it is still good.

3. No, it can only be used in the state which it is recorded.

4. No, because it must be updated every 6 months in order to be valid.

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18. Can someone be on the Deed to the property that is not on the loan?

This answer provided by Ben Seamon with Bell and Alexander Title. To contact Ben, CLICK HERE.

1. Yes, under most circumstances.

2. No, only the borrowers can be on the deed.

3. Yes, if the lender gives written permission to the borrower.

4. No, unless the tax assessors office gives permission.

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19. Does the Title Company always hold the earnest money?

This answer provided by Ben Seamon with Bell and Alexander Title. To contact Ben, CLICK HERE.

1. Yes

2. TREC will only let Title Companies hold the earnest money.

3. TREC will only let Real Estate Brokerages hold the earnest money.

4. It needs to be stated in the contract who will be holding the earnest money.

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20. Who is suppose to pay for the title policy?

This answer provided by Ben Seamon with Bell and Alexander Title. To contact Ben, CLICK HERE.

1. The Buyer

2. The Seller

3. They split the cost

4. Either party can pay. Write it in the contract.

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