Question 22

Proposed terms of repayment are typically included in a credit application.

When applying for credit, a prospective buyer usually provides the proposed terms of repayment along with their employment information, loan amount, and the legal description of the property.

A) Type of previous home loans held.

While information about previous home loans can be relevant to a lender, it is not a standard requirement in a credit application. Lenders focus more on the buyer's current financial situation and the proposed terms for the new loan.

B) Proposed terms of repayment.

This option is correct as it directly relates to the specifics of the loan the buyer is seeking. Lenders require the proposed terms of repayment to assess the buyer's ability to repay the loan and to understand the financial commitment the buyer is willing to undertake.

C) Licensee's name and firm's address.

Although this information might be necessary in some contexts, it is not typically included in a credit application by the buyer. It is more related to the real estate transaction process rather than the credit application itself.

D) Other lenders to which applications were submitted.

This information is generally not required in a credit application. While it may inform the lender about the buyer's shopping behavior, it does not provide direct insight into the buyer's financial situation or repayment capabilities.

Conclusion

Proposed terms of repayment is the most relevant detail that a prospective buyer submits in a credit application, as it informs the lender about the financial terms the buyer is willing to agree to. Other options, while potentially useful in specific contexts, do not directly pertain to the essential information needed for assessing creditworthiness. Thus, option B stands out as the correct answer.