At the closing of home purchase, the "earnest" money has the purpose of:
A)paying real estate property taxes.
B)reducing the mortgage interest rate.
C)paying a mortgage application fee.
D)paying the real estate agent's commission.
E)serving as evidence of serious intent.

Question

Quizplus · Accepted Answer

The purpose of the "earnest" money is to serve as evidence of serious intent to purchase the home. This money shows the seller that the buyer is committed to the purchase and may be applied towards the down payment, closing costs, or other fees associated with the transaction.

At the Closing of Home Purchase, the "Earnest" Money Has