Alabama Real Estate Practice Exam 2025 – All-in-One Guide to Master Your Real Estate License!

Question: 1 / 400

What does the Real Estate Settlement Procedures Act (RESPA) require lenders to provide to borrowers?

A maximum interest rate

A list of approved properties

A good-faith estimate of closing costs

RESPA requires lenders to provide borrowers with a good-faith estimate of closing costs, which includes an itemized list of all expenses related to the mortgage loan. Options A, B, and D do not pertain to the requirements set forth by RESPA. Option A deals with interest rates, which may be subject to fluctuation and not necessarily a fixed maximum. Option B, while beneficial, is not required by RESPA. Option D refers to pre-approval for mortgages, which is a separate process not regulated by RESPA. Therefore, the most accurate option is C.

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Pre-approval for mortgages

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