Final answer:
The 'Cash at Closing' figure is the amount the buyer needs to bring to closing, which is the difference between the purchase price and the funding sources, excluding loan costs and other buyer's closing costs. Answer 4) 2 and 3 are correct.
Step-by-step explanation:
The Cash at Closing figure in the Price and Terms section of a Contract to Buy and Sell generally represents the amount the buyer needs to bring to the closing. This figure may be the difference between the purchase price and the money that will come from a mortgage or other sources to fund the purchase. However, it often does not include loan costs and other buyer's closing costs, which can be substantial additional amounts that the buyer needs to provide. Therefore, the correct answer to the student's question is: 4) 2 and 3 are correct.
When considering purchasing a home, it's also essential to understand the concept of Escrow, where money is held by a third party to be used for paying expenses like home insurance and property taxes as part of the homeowner's normal monthly payment. This is relevant as these payments can influence the total amount needed at closing.