Debit vs Credits Flashcards
1
Q
What is a debit?
A
Money you owe
2
Q
What is a credit?
A
Money coming to you
3
Q
What debit would a seller owe at closing?
A
Past due taxes, second mortgages on the home, and repairs or upgrades that need to be made fore the buyer will purchase the home.
4
Q
Taxes
A
Every state bases its property tax calendar year differently.
5
Q
Insurance Prorations
A
At the time of closing, sellers may find that they’ll get money back for prepaid insurance.
