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
For a construction-to-permanent loan, when must the initial Closing Disclosure be provided for the construction phase?
A title company provides an MLO with a detailed marketing analysis showing average days on market for properties in the MLO's territory. In exchange, the MLO agrees to refer at least 5 transactions per month. This arrangement is:
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:
A mortgage brokerage pays its MLOs a flat fee of $2,000 per closed loan, regardless of loan amount or terms. Additionally, the company pays a quarterly team bonus to all MLOs if the office meets certain customer satisfaction scores. Which statement is correct?
An MLO receives an application from a borrower on Tuesday at 4 PM. The borrower emails additional required documentation on Thursday at 10 AM, making the application complete. When must the Loan Estimate be delivered?
A borrower requests that all loan communications be sent only to their workplace address because they are in the process of divorce and don't want their spouse to see mortgage-related documents. How should the MLO handle this request?
An MLO receives a DU finding of 'Refer' with a message indicating 'Multiple Financed Properties.' The borrower owns two rental properties and is purchasing a primary residence. What does this DU message most likely indicate?
An applicant's credit report shows a Chapter 7 bankruptcy discharge date of exactly 2 years ago, but also shows a mortgage foreclosure with a completion date of 6 months ago. Which waiting period applies?
A borrower's loan application shows a debt-to-income ratio of 45%. What additional documentation requirement applies under the Ability-to-Repay rule?
An MLO provides pre-qualification based on a borrower's current employment but learns the borrower is starting a new job next month with a $10,000 salary increase. How should this information be handled?
People Also Study
Federal Mortgage-Related Laws
24% of exam
General Mortgage Knowledge
20% of exam
Ethics, Fraud & Consumer Protection
18% of exam
Uniform State Test Content
11% of exam
Related Study Resources
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?