Alabama Real Estate Practice Exam

What can FHA-insured loan recipients see one day before closing?

1. The final sale price

2. The property deed

3. Closing costs

4. A list of property defects

The correct answer is: Closing costs

FHA-insured loan recipients can see their closing costs one day before closing. While some may argue that the other options could also be seen before the closing date, they are not guaranteed to be seen one day before closing. For example, the final sale price could change during negotiations leading up to closing, the property deed may not be finalized and delivered until the day of closing, and a list of property defects may only be provided during the final walkthrough. Closing costs, however, are typically finalized and disclosed one day before closing and are an important part of the loan recipient's financial obligations in the transaction. This information allows borrowers to prepare and budget for the funds needed to close on their new home. Therefore, C is the most accurate answer.