A buyer agreed to put down $5,000 as earnest money toward a house he was buying for $97,000. The offer was based upon receipt of an 80% loan from a bank. The attorney's fees were $2,000 and all other buyer costs amounted to $1,500. How much money will the buyer need to pay at settlement?
A) $14,400
B) $17,900
C) $17,700
D) $22,900

Question

Quizplus · Accepted Answer

The buyer has agreed to pay $97,000 but the lender will supply 80% or $77,600;so the down payment is 97,000 - 77,600 = 19,400. Add to that $2,000 and $1,500 in expenses but subtract $5,000 because he has already deposited that much as earnest money;
19,400 + 2,000 + 1,500 - 5,000 = 17,900.

A Buyer Agreed to Put Down $5,000 as Earnest Money