PSI Virginia Real Estate Practice Exam

Which costs are included in buyer funds needed at closing?

1. Only the cost of the property

2. Costs for title policies, inspections, and various lender fees

3. Homeowner's association fees only

4. Professional staging fees

The correct answer is: Costs for title policies, inspections, and various lender fees

The buyer funds needed at closing typically encompass a variety of costs that go beyond just the purchase price of the property. In this context, the inclusion of costs for title policies, inspections, and various lender fees reflects the total financial commitment a buyer must anticipate when finalizing a real estate transaction. When purchasing a property, buyers are responsible for a range of expenses that ensure the transaction is legally sound and financially feasible. Title policies protect the buyer from any legal claims against the title of the property, offering peace of mind that the ownership is clear and unencumbered. Inspections are crucial as they reveal the property's condition and any potential issues that may need to be addressed. Lender fees often cover aspects of the loan process, including origination fees, underwriting costs, and potentially other costs associated with securing the mortgage. By understanding that closing costs include these essential elements, buyers can better prepare their financial resources and avoid any last-minute surprises during the closing process. This comprehensive view of costs involved helps ensure that buyers are not only ready to purchase the property but also to cover all associated expenses integral to a successful closing.