Escrow & Title
Which of the following items is typically a CREDIT to the buyer on the closing disclosure?
AThe purchase price
BOrigination fees
CEarnest money deposit already paid✓ Correct
DProrated property taxes owed by the seller
Explanation
On the closing disclosure, the earnest money deposit previously paid by the buyer is credited to the buyer (reduces the amount the buyer owes at closing). The purchase price is a debit to the buyer, and prorated taxes owed by the seller appear as a credit to the buyer.
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