RE Contracts Ch. 3 Sales Price and Financing Addendum

  1. What is all listed under Paragraph 3, Sales Price?
    • -down payment
    • -the loan amount
    • -sale's price total
  2. 3.A sets amount of down payment, and does not include what?
    • -closing costs
    • -earnest money
  3. Who requires the amount of down payment?
  4. 95% loans require what?  90% loans require what? A common figure is _____, which allows the borrower to skip qualifying for or paying for private mortgage insurance.
    • -5% down and good credit
    • -10% down and P.M.I., private mortgage insurance
    • -20%
  5. Closing costs are covered in 3.A.
    false; they are covered in para 22 and other paras
  6. A seller may not receive all of the down payment money the buyer puts down.
    true; some can go to the title company to pay off bills
  7. Funds other than the down payment, what other up-front costs might the buyer have to pay?
    -prepaid costs(reserves for property taxes and insurance paid to the lender, interim interest from the date of closing to the end of the month, regular closing costs (appraisals, credit reports, etc.) and any points the buyer is to pay.
  8. Do NOT increase or decrease 3.A. to take account of earnest money.
    • true; funds are with title company and will be used during closing; 
    • ***At closing down payment can be earnest money or what ever money the buyers come up with.
  9. 3.B. refers to the type of addendums:
    • -third party financing
    • -loan assumption addendum
    • -seller financing addendum
  10. 3.B. includes the total of all _____ used to by the house.
  11. What is loan assumption addendum?
  12. For completing for cash transactions, 3.A. and 3.C. must match and 3.B. must be...
  13. Problems that may arise with cash buyers.
    • -You don't know if they really have the cash or not; can take longer on closing
    • -Fix the problem; more earnest money and set date for closing
    • -watch out for credit borrowers, they should be check out; they won't disclose where they are getting the money.
  14. Paragraph 4 deals with what
    is a license holder is part of the deal
Card Set
RE Contracts Ch. 3 Sales Price and Financing Addendum
contracts sales price and financing addendum