How long is a typical pre-approval letter valid?
Correct Answer
B) 60-90 days
Pre-approval letters typically remain valid for 60-90 days, as financial circumstances, credit scores, and market conditions can change. After this period, lenders usually require updated documentation and re-verification of the borrower's financial status.
Why This Is the Correct Answer
Pre-approval letters typically remain valid for 60-90 days, as financial circumstances, credit scores, and market conditions can change. After this period, lenders usually require updated documentation and re-verification of the borrower's financial status.
More Origination Questions
A borrower has a construction-to-permanent loan with a 12-month construction phase. At month 10, construction is only 60% complete due to delays. What is the most likely outcome?
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
During a refinance transaction, the appraiser determines that significant unpermitted additions were made to the property. The appraiser wants to discuss this with the MLO before finalizing the report. What should the MLO do?
An appraiser discovers that a property has significant foundation issues that were not disclosed. The appraiser reduces the property value by $25,000 and includes detailed comments about the structural problems. The loan officer is upset because this will kill the deal. Under AIR, the loan officer:
An MLO's compensation structure includes higher payments for certain loan products. When is it acceptable to recommend these higher-compensated products?
People Also Study
Federal Mortgage-Related Laws
23% of exam
General Mortgage Knowledge
23% of exam
Ethics, Fraud & Consumer Protection
17% of exam
Uniform State Test Content
12% of exam
Previous Question
Under what circumstances can a lender charge a borrower for providing the required Loan Estimate disclosure?
Next Question
A borrower requests a rate lock on a construction-to-permanent loan where the construction phase is 8 months and the permanent phase begins immediately after. The lender's rate lock policy allows maximum 120-day locks. How should the MLO handle this situation?