Escrow & Title
At closing, the buyer's earnest money deposit is typically applied to:
AThe broker's commission
BThe buyer's total funds required at closing (down payment and closing costs)✓ Correct
CThe seller's mortgage payoff
DThe title insurance premium
Explanation
Earnest money held in escrow is applied as a credit toward the buyer's total funds needed at closing, reducing the amount of cash the buyer must bring to the closing table.
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