Which of the following items would NOT typically appear in the borrower's section of the settlement statement?
Correct Answer
C) Real estate commission
Real estate commissions are typically paid by the seller and would appear in the seller's section of the settlement statement. The borrower's section includes items like loan amounts, deposits, and prepaid expenses that the borrower is responsible for.
Why This Is the Correct Answer
Real estate commissions are typically paid by the seller and would appear in the seller's section of the settlement statement. The borrower's section includes items like loan amounts, deposits, and prepaid expenses that the borrower is responsible for.
More Mortgage Knowledge Questions
A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?
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A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?
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A property appraises for $300,000 but the sales price is $320,000. The borrower obtains a loan for $240,000. What is the LTV ratio for underwriting purposes?
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