Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

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Prepare for the Texas Real Estate SAE Exam with our educational quiz. Study using flashcards and multiple choice questions, each with detailed explanations to ensure you're ready to pass your exam!

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Which financial aspect is inappropriate for a lender to inquire about?

Income details
Divorce status
Child support payments if not used for qualification
Credit history

The correct answer is: Divorce status

Divorce status is considered an inappropriate inquiry for a lender during the mortgage application process because it does not directly relate to a borrower's ability to repay a loan. While understanding a borrower's overall financial situation is important, personal circumstances such as marital status are generally not relevant to the evaluation of creditworthiness or loan qualification. Inquiries should focus on quantifiable financial metrics and obligations that impact the borrower's financial capacity. Lenders typically concentrate on income details, credit history, and relevant financial obligations like child support payments that directly affect debt-to-income ratios and the ability to repay borrowed funds. These elements provide clearer insights into a borrower's financial responsibility and capability to handle future payments, which is essential for assessing risk and making lending decisions.