Question

Fees can be "Paid by" which three options?

A) Borrower, Assistant, Loan Officer
B) Borrower, Lender, Seller
C) Neighbor, Guarantor, Borrower
D) Lender, Assistant, Neighbor

Answer 1

Fees in financial transactions, like real estate purchases, can generally be paid by the borrower, the lender, or the seller. An escrow account may be used to manage periodic payments, such as home insurance and property taxes, for the borrower.

Step-by-step explanation:

The fees associated with financial transactions, particularly in the context of buying a home or obtaining a loan, can be paid by various parties. When considering who is responsible for covering these costs, there are generally three primary options:

1. The borrower, who is the individual or entity taking out the loan.
2. The lender, which is the bank or financial institution providing the loan.
3. The seller of a property, especially in the context of real estate transactions.

Understanding the responsibilities of each party is crucial for a smooth financial transaction. For instance, in a home purchase, costs such as home insurance and property taxes may be managed through an escrow account, which simplifies the payment process for the borrower.