California Real Estate Practice Exam

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Study for the California Real Estate Exam. Engage with multiple choice questions and detailed explanations to sharpen your knowledge. Get ready to ace your real estate career!

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What will a buyer seek from a mortgage lender to ensure they can purchase a house upon completion?

A standby commitment
A full payment upfront
A construction loan
A down payment

The correct answer is: A standby commitment

A buyer will seek a standby commitment from a mortgage lender to ensure they can purchase a house upon completion. This is because a standby commitment is a written assurance from the lender that they will provide a loan for the purchase of the house when it is completed. This option is more beneficial for the buyer compared to the other options provided. Option B and option C (full payment upfront and construction loan) are not feasible for most buyers as they require a large lump sum payment at once, which may not be affordable. Option D (down payment) is also not as useful as a standby commitment as it only covers a portion of the total cost of the house, leaving the buyer to find alternative sources for the remaining amount. A standby commitment, on the other hand, provides assurance for the full purchase price of the house.