20 questions

Part A: the players and the paperwork

Part B: financing, gift funds and concessions

Full Name *

Who independently confirms a home's market value for the lender? *

The home inspector

The title agent

The appraiser

The transaction coordinator

What does the title agent do? *

Confirms clear ownership and issues title insurance

Negotiations appraised value with bank

Underwrites and funds the buyers mortgage

Evaluates the property's condition and systems

Which best describes the escrow agent role? *

Underwrites and funds the mortgage

Give legal advice

Independently confirms the home's market value

A neutral third party holding funds until closing

What is an ALTA settlement statement, and when does title typically send it? *

The lender's early estimate of closing costs, sent at application

The itemized closing statement showing every dollar in the transaction, sends draft 1-3 days before closing. Changes can be made up until closing.

The title insurance policy, issued after closing

The buyer's loan approval letter, sent once underwriting clears

What does a contingency do? *

Sets a condition that must be met for the contract to proceed, and gives the buyer a defined way out if it isn't

Guarantees the buyer's financing will be approved

Locks the purchase price for 30 days

Transfers all liability to the seller

Which describes the transaction coordinator's role? *

Reviews contracts and may run closing, depending on the state

Verifies the buyer's income and assets

Represents the seller in negotiations

Manages paperwork, deadlines, and communication

Your client is buying a condo and asks who approves their move-in. Who handles that? *

The title company

The HOA or condo association, through its management company

The lender

The transaction coordinator

Who is responsible for conducting the closing? *

It's state-dependent — in some states an attorney reviews contracts and runs closing, a title or escrow company in others.

A real estate attorney, in every state

The lender, in every state

The buyer's agent

Which of these would you expect to find on a settlement statement? *

The home inspection findings

The appraisal report

The seller's original mortgage application

Prorated taxes, HOA dues, commissions, and deposits

Your client uses a term you don't recognize on a call. What's the right move? *

Answer confidently and look it up later

Redirect the conversation

Say you'll get them the exact answer, then confirm and follow up

Refer them to the lender

When does a lender require a gift letter? *

Any time funds in the buyer's account don't clearly come from their own income or assets

On every transaction involving a first-time buyer

Only when the gift is more than 20% of the purchase price

Only on FHA loans

What does a gift letter typically state? *

The donor's credit score and employment history

The buyer's full loan terms and interest rate

A repayment schedule agreed to by both parties

The donor's name, relationship to the buyer, dollar amount, property address, and that no repayment is expected

If the buyer is financing, how many days before closing must the lender deliver the Closing Disclosure (CD)? *

7 DAYS BEFORE CLOSING

14 DAYS BEFORE CLOSING

3 DAYS BEFORE

DAY OF CLOSING

Which of these is a buyer concession? *

The buyer agreeing to a shorter inspection period

A credit from the seller at closing toward the buyer's closing costs, a repair credit, or a rate buy-down

The buyer waiving the appraisal contingency

The listing agent reducing their commission

Seller concessions can never be applied toward which part of the buyer's costs? *

Prepaids

Closing costs

The down payment

A rate buy-down

What's the FHA seller concession cap, and what do actual closing costs usually run? *

Cap of 3%, costs usually around 2%

Cap of 9%, costs usually around 6%

No cap — it's negotiable on every file

Cap of 6%, costs usually closer to 4%

Your seller will give 6% in concessions, but the buyer's actual closing costs are closer to 4%. What's the smarter structure? *

Ask for the full 6% — the buyer keeps the difference in cash

Ask for 4% and lower the purchase price by the difference, because unused concession money goes back to the seller

Ask for the full 6% and apply the extra to the down payment

Ask for 6% and have title refund the difference to the buyer at closing

What's the conventional cap on seller contributions for a buyer putting less than 10% down? *

You're presenting two offers and both buyers say they're "approved." What do you ask, and which is stronger? *

Ask whether it's a pre-approval or a DU/AUS approval — DU is stronger, because the file has actually been underwritten

Ask for both credit scores — the higher score is the stronger buyer

Ask which lender is local — a local lender is the stronger file

They're equivalent, since both mean the buyer is approved

What is a rate buy-down? *

Money paid at closing to lower the buyer's interest rate

A reduction in the purchase price negotiated after the inspection

A lender fee charged for expedited underwriting

A credit that reduces how much cash the buyer needs for a down payment