In a closing statement, new loan proceeds are listed as?

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Study for the Burk Baker National Test. Use flashcards and multiple choice questions with hints and explanations to prepare effectively. Get ready for your exam!

Multiple Choice

In a closing statement, new loan proceeds are listed as?

Explanation:
New loan proceeds are shown as a credit to the buyer. On a closing statement, credits are funds coming into the party, while debits are funds going out. The lender’s money for the buyer’s purchase comes to the buyer, reducing the buyer’s net amount due at closing or increasing their available cash after closing. The seller isn’t receiving the loan funds, so it wouldn’t be a credit to the seller. It also wouldn’t be a debit to the buyer or to the seller, since the money is entering the buyer’s side as part of financing.

New loan proceeds are shown as a credit to the buyer. On a closing statement, credits are funds coming into the party, while debits are funds going out. The lender’s money for the buyer’s purchase comes to the buyer, reducing the buyer’s net amount due at closing or increasing their available cash after closing. The seller isn’t receiving the loan funds, so it wouldn’t be a credit to the seller. It also wouldn’t be a debit to the buyer or to the seller, since the money is entering the buyer’s side as part of financing.

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