Florida Real Estate Practice Exam

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Prepare for your Florida Real Estate Exam with a comprehensive quiz featuring multiple-choice questions, hints, and detailed explanations. Gain the confidence you need to succeed in obtaining your real estate license!

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At the time of the mortgage loan application, The Real Estate Settlement Procedures Act (RESPA) requires

  1. Good faith estimate

  2. Insurance

  3. Lien

  4. APR

The correct answer is: Good faith estimate

RESPA is a federal law that is designed to protect consumers in the mortgage loan process. It requires lenders to provide borrowers with a good faith estimate (GFE) at the time of the mortgage loan application. This estimate outlines the costs and terms associated with the loan, giving the borrower an idea of what to expect when it comes to closing costs and monthly payments. Options B, C, and D are incorrect because although they may be related to the mortgage loan process, they are not specifically required by RESPA at this stage. Insurance may be required for the loan, but RESPA does not specifically require it at the time of application. A lien may be placed on the property as security for the loan, but RESPA does not address this. And APR, or annual percentage rate, is a measure of the interest rate and fees associated with the loan, but RESPA does not require lenders

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