What is the exam-ready answer?
| Roadmap lesson | 72 of 500 |
|---|---|
| Official syllabus topic | Mortgage Underwriting and Loan Qualification |
| Official PSI area | Financing |
| Published area weight | 10% of the 100-question national portion |
| Exam portion | National salesperson portion |
| Source edition | PSI Georgia Candidate Information Bulletin dated July 1, 2026 |
| Last verified | August 2, 2026 |
The Rule
PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.
Complete lesson
Read each concept as part of one decision system. The exam often gives one accurate statement and three statements that belong to a nearby concept.
Capacity and credit
Underwriters verify stable qualifying income and recurring debts to assess repayment capacity, then review credit history and score under the program's standards.
Capital and assets
Funds for down payment, closing costs, and reserves must be documented and sourced as required. Undisclosed borrowing can change qualification.
Collateral
An appraisal helps evaluate value and marketability, while property condition and title information can affect eligibility. Appraised value does not itself approve the borrower.
Ratios and risk controls
Debt-to-income and loan-to-value ratios help measure risk. Mortgage insurance, guarantees, pricing, or added conditions may address higher leverage, subject to program rules.
Decision rule
Georgia-specific distinction
Worked example
Scenario. A buyer receives preapproval, then takes a large auto loan before closing.
Reason it through. The new monthly obligation changes debt ratios and credit risk. Preapproval was conditional, not a promise to fund regardless of later changes.
Answer. The lender may re-underwrite, change terms, or deny the mortgage under applicable rules.
Common exam traps
- Treating preapproval as guaranteed funding
- Assuming appraisal approves credit
- Ignoring new debt before closing
- Using protected-class assumptions
Original practice questions with detailed explanations
These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.
Question 1Which factor most directly measures recurring debt against qualifying income?
- A. Debt-to-income ratio
- B. Cap rate
- C. Gross-rent multiplier
- D. Millage rate
Show answer and explanation →
Answer: A. Debt-to-income ratio
DTI compares specified monthly debts with qualifying monthly income.
Question 2Does a preapproval guarantee closing?
- A. Yes
- B. No, it remains subject to conditions and final review
- C. Only in cash sales
- D. Only if the appraisal is high
Show answer and explanation →
Answer: B. No, it remains subject to conditions and final review
Financial, property, title, and documentation conditions can remain outstanding.
Question 3What does collateral review focus on?
- A. The borrower's personality
- B. The property securing the loan
- C. The listing broker's commission
- D. The county budget
Show answer and explanation →
Answer: B. The property securing the loan
Collateral analysis concerns the property's value, eligibility, condition, title, and marketability.
Mastery tracking
Mark this lesson mastered only when every statement is true.
- State the direct answer and decision rule without notes.
- Explain every core concept in plain English.
- Solve the worked example after changing one important fact.
- Identify the Georgia distinction before reading answer choices.
- Answer all three questions correctly and reject every distractor.
- Repeat the topic in mixed practice on a later day.
Recommended next lesson
Continue with Loan Clauses and Default Remedies. Continue to roadmap lesson 73 and build on this decision rule.
Return to the Financing hub to see every official branch and the complete lesson sequence for this content area.