Finance
What is 'seasoning' as it applies to a North Dakota mortgage applicant's funds?
AThe age of the mortgage on the property
BThe requirement that funds used for a down payment have been in the applicant's account for a specified period (typically 60 days) to verify their source✓ Correct
CThe period during which the interest rate is locked
DThe time between application and closing
Explanation
Lenders require that down payment funds have been 'seasoned'—sitting in the applicant's account for a specified period—to verify they are not borrowed funds or gifts that could affect the borrower's actual financial position.
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