What does the loan amount in Paragraph 3.B. of the sales contract include?

In a sales contract, particularly within the context of Texas promulgated contracts, the loan amount outlined in Paragraph 3.B. specifically refers to the amount that the buyer is borrowing from the lender. This amount is considered the principal loan amount that is funded for the purchase of the home, representing the actual borrowing without any additional financial costs included.

In many real estate transactions, it's essential to differentiate between the loan itself and other related costs. Other options may refer to costs associated with the loan but do not represent the actual loan amount as stated in the contract. For instance, mortgage insurance and origination fees are separate costs that may be part of the overall transaction but are not included in the basic loan amount. The earnest money also factors into the initial payment made to demonstrate good faith but does not influence the total loan amount for purchasing the property.

Thus, the correct understanding of the loan amount is focused solely on the funds borrowed by the buyer for the purchase, aligning with standard definitions used in real estate contracts.