Texas PL: Real Estate Finance Course Overview

Texas Real Estate Finance

The TREC requirements for an approved real estate education program include six courses. We recommend taking the courses in this order: 

Each course takes 30 classroom hours to complete. Each course will help you prepare to pass the licensing exam.  This overview will let you know what to expect from the Real Estate Finance course.

Real Estate Finance covers the basics of financing that are essential for real estate professionals to know. Let’s go over a few of the key topics the course will cover.

The Economy and Monetary System

The real estate market is strongly influenced by the national economy, so the course starts out with information about economic cycles and the monetary system.

It’s like a quick refresher on your high school or college economics course, but with a focus on what will matter most to you in your day-to-day as a real estate agent. 

Government Programs and Organizations

The government plays a big role in real estate financing. This course will get you acquainted with the following laws and government entities, plus give you an understanding of how they shaped today’s lending practices.

Government organizations and systems:

  • The Federal Reserve System

  • The Federal Deposit Insurance Corp (FDIC)

  • The Federal Home Loan Bank System (FHLB)

  • U.S. Department of Housing and Urban Development (HUD)

Important financial legislation:

  • Truth in Lending Act (TILA)

  • Real Estate Settlement Procedures Act (RESPA)

  • Dodd-Frank Act

  • Secure and Fair Enforcement for Mortgage Licensing Act (SAFE)

  • Administrative Procedure Act (APA)

Standard Financing Processes

The Real Estate Finance course will help you get familiar with a few standard forms and procedures commonly used in real estate transactions that involve financing.

You will learn about:

  • Loan applications

  • Pre-qualification and pre-approval

  • Appraisal

  • The Loan Estimate

  • The Closing Statement

  • Loan funding

Other professionals, such as loan officers, will be in charge of facilitating these things. Still, you’ll want to understand what’s going on so that you can support and prepare your future clients throughout the journey. 

Primary and Secondary Mortgage Markets

Spoiler warning: The course will teach you that mortgages and created between borrowers and lenders on the primary mortgage market, then later sold to investors and major financing entities on the secondary mortgage market.

You’ll get a look at all the sources of financing that homebuyers can choose from (commercial banks, credit unions, private lenders, and more). Plus, if economic news has never really been your thing, you’ll finally find out who Fannie Mae and Freddie Mac are!

Types of Mortgage Loans

A home is often the biggest purchase a person makes in their lifetime. Real estate is pricey (hello, commission checks!), which means that the vast majority of buyers you work with will need to get a loan. Although you will be directing clients to professional lenders to figure out which loans they qualify for, it will be a huge advantage for you to understand the basics.

Real Estate Finance will cover all kinds of mortgage loans, including:

  • FHA loans

  • VA loans

  • Conventional loans

  • Conforming vs. nonconforming loans

  • Fixed-rate vs. adjustable rate mortgages

You’ll even learn how to spot red flags that may indicate mortgage fraud.

Defaults and Foreclosures

It’s a downer, but knowing about loan defaults and foreclosures is important for real estate agents. The course will teach you what causes default, how lenders and borrowers can get back on track, and if all else fails, how the foreclosure process is handled. 

See the Curriculum and Get Started

That’s it for the Real Estate Finance overview. You can read over the full, TREC-published course curriculum to get a more comprehensive idea of the exact topics you’ll cover. 

Don’t worry. You don’t have to be an economics whiz to learn the highlights of real estate financing. Aceable Agent’s pre-license courses break the info down into manageable, simple lessons. 

If you’re ready to take on Real Estate Finance, read more about how to get your license and the cost of a real estate license in Texas.

Kayla Zamora

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