Debits would reflect the buyer's

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Multiple Choice

Debits would reflect the buyer's

In a closing statement, debits are the costs the buyer must pay at closing, reducing the buyer’s net cash due. The funds from a new loan aren’t debits for the buyer; they’re credits because loan proceeds come from the lender and help cover the purchase amount, effectively increasing the buyer’s funds at closing. Appraisal fees and escrow/title fees are closing costs paid by the buyer, so they appear as debits. Since both appraisal and escrow/title fees are charged to the buyer, the item that best reflects the buyer’s debits is the combination of those two costs.

In a closing statement, debits are the costs the buyer must pay at closing, reducing the buyer’s net cash due. The funds from a new loan aren’t debits for the buyer; they’re credits because loan proceeds come from the lender and help cover the purchase amount, effectively increasing the buyer’s funds at closing. Appraisal fees and escrow/title fees are closing costs paid by the buyer, so they appear as debits. Since both appraisal and escrow/title fees are charged to the buyer, the item that best reflects the buyer’s debits is the combination of those two costs.

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