Respuesta :
Answer:
The cash balance required from the buyer at closing is $34,865.
Explanation:
The cash balance required from the buyer at closing is the excess of his expenses over his receipts. This can be calculated as follows:
Particulars $ $
Receipts:
Earnest money deposit 12,000
Loan received 318,000
Total receipts 330,000
Expenses:
Purchase price (360,000)
Origination fee (3,180)
Lender's policy of title insurance (400)
Appraisal (300)
Property taxes in advance (430)
Hazard insurance (555)
Total expenses (364,865)
Balance required (34,865)
Therefore, the cash balance required from the buyer at closing is $34,865.
