Question

The sales contract in the borrower's file states the agreed purchase price is $162,000. The closing costs are $3,700. The seller is paying $1,200 in closing costs on a $153,900 loan amount. What is the acquisition cost?

Answer 1

The acquisition cost is $165,700.

Step-by-step explanation:

The acquisition cost is calculated by adding the purchase price of the property to the closing costs paid by the buyer. In this case, the purchase price is $162,000 and the closing costs are $3,700. So, the acquisition cost would be $162,000 + $3,700 = $165,700.