At which point are the buyer's obligations to pay determined by their debits and credits?

At which point are the buyer's obligations to pay determined by their debits and credits?

• A. At the signing of the purchase agreement
• B. At closing
• C. At listing
• D. At loan approval

Answer: (B)

The final accounting of what the buyer must pay is set at closing. At that moment the settlement (or closing) statement shows all debits and credits: the buyer’s debits include the purchase price, loan closing costs, prepaid items, and any other costs, while credits include seller credits, prorations for taxes or HOA dues, and other adjustments. The net amount left for the buyer to bring to closing (or to wire) is determined by these figures. Before closing, numbers are estimates or contingencies, and signing the purchase agreement commits parties to terms but doesn’t lock in the final amounts. Listing is just marketing, and loan approval affects financing but does not finalize the closing-day accounting.

The final accounting of what the buyer must pay is set at closing. At that moment the settlement (or closing) statement shows all debits and credits: the buyer’s debits include the purchase price, loan closing costs, prepaid items, and any other costs, while credits include seller credits, prorations for taxes or HOA dues, and other adjustments. The net amount left for the buyer to bring to closing (or to wire) is determined by these figures. Before closing, numbers are estimates or contingencies, and signing the purchase agreement commits parties to terms but doesn’t lock in the final amounts. Listing is just marketing, and loan approval affects financing but does not finalize the closing-day accounting.