Escrow & Title
Under the Georgia Good Funds Law, disbursements at closing may not be made until:
AThe buyer signs all closing documents
BThe deed has been recorded
CCollected funds (good funds) have been confirmed as received✓ Correct
DGREC approves the transaction
Explanation
The Georgia Good Funds Law requires that closing attorneys confirm the receipt of collected (good) funds before disbursing any proceeds — protecting all parties from bounced checks or wire failures.
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Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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