If a buyer has made an earnest money payment of $5,000 and additional option money of $2,000 for a property priced at $160,000 with a required down payment of 20%, how much more is needed at closing?

To determine how much more is needed at closing, begin by calculating the total down payment required for the property. The property is priced at $160,000 with a down payment requirement of 20%.

First, calculate the down payment:

• 20% of $160,000 is calculated as follows:

[

\text{Down Payment} = 0.20 \times 160,000 = 32,000

]

Next, subtract the amounts already paid by the buyer from this down payment. The buyer has already made an earnest money payment of $5,000 and an additional option money payment of $2,000:

• The total amount already paid is:

[

\text{Total Paid} = 5,000 + 2,000 = 7,000

]

Now, to find out how much more is needed at closing, subtract the total paid from the down payment:

• The remaining amount needed at closing is:

[

\text{Amount Needed} = 32,000 - 7,000 = 25,000

]

Thus, the buyer needs an additional $25,000 at closing. This matches the