If the sale price is $180,000, with 20% down, earnest money $4,000, option money $3,000 credited, what is the down payment due at closing?

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Prepare for the NMLS Laws and Regulations Test with multiple choice questions and detailed explanations. Enhance your understanding and get ready to ace your exam with confidence!

Multiple Choice

If the sale price is $180,000, with 20% down, earnest money $4,000, option money $3,000 credited, what is the down payment due at closing?

Explanation:
The buyer must bring 20% of the sale price as the down payment. 20% of 180,000 is 36,000. Earnest money of 4,000 and option money of 3,000 are credits toward the down payment, so total credits = 7,000. Subtracting the credits from the required down payment gives 36,000 − 7,000 = 29,000. The down payment due at closing is 29,000.

The buyer must bring 20% of the sale price as the down payment. 20% of 180,000 is 36,000. Earnest money of 4,000 and option money of 3,000 are credits toward the down payment, so total credits = 7,000. Subtracting the credits from the required down payment gives 36,000 − 7,000 = 29,000. The down payment due at closing is 29,000.

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