Final answer:
The buyer is informed by the buyer's agent, attorney, or lender about the necessary closing costs at closing. The correct answer is option b.
Step-by-step explanation:
When it comes to buying a home, there are many important factors that need to be considered, including when a buyer is informed about how much money will be needed to complete the purchase. Specifically, you are asking when the buyer's agent, attorney, or lender informs the buyer about the closing costs. The correct answer to this question is: b. at closing. This means that the buyer will typically be told the final amount that will be needed to close on the purchase of the home just before the closing process is completed. Closing costs can include items such as loan origination fees, appraisal fees, title searches, title insurance, surveys, taxes, deed recording fees, and credit report charges.
Understanding terms like Escrow is also crucial in the home buying process. Escrow refers to a third party handling the exchange of money during a transaction, and in terms of monthly mortgage payments, it often includes the collection and payment of property taxes and home insurance on behalf of the homeowner.
In the case of Freda, she paid $150,000 in cash for her home, which would now sell for $250,000. For Ben, he purchased his home for $100,000 with a 20% down payment, financed the rest, and has now seen the value of his home increase to $160,000 while also paying off $20,000 of his bank loan. Both examples show increases in home values, but also depict different financing and equity situations for the homeowners.