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Mary Is Buying a Home for the First Time

Question 14

Multiple Choice

Mary is buying a home for the first time.She has $200 000.00 in her bank account and has been pre-approved for a $100 000.00 mortgage.Mary now finds a house priced at $300 000.00 and based on her calculation of the money in her account and the pre-approved mortgage,she enters into an agreement of purchase and sale for it with its owner.In this case


A) Mary's calculation is not correct,and she will probably not have enough money to close the transaction.
B) Mary's calculation is correct,and she will probably have enough money to close the transaction.
C) Mary's calculation is correct,and she will definitely have enough to close the transaction.
D) Mary's calculation is likely not correct because real estate commissions are usually paid on top of the sale price.
E) none of the above

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