A buyer's financing arrangements are often concluded at closing because

• A. To speed the process
• B. To ensure proper handling of the collateral
• C. To avoid title insurance
• D. To reduce interest rates

Answer: (B)

Financing arrangements are finalized at closing to secure the lender’s interest in the property. At closing, the loan documents are signed and a mortgage or deed of trust is created and recorded, giving the lender a perfected lien on the collateral. This ensures the lender’s security is in place before funds are disbursed and the buyer takes title, making the transaction legally complete. The other options don’t fit because timing isn’t about speeding the process, title insurance is still needed to protect against defects, and interest rates aren’t typically reduced simply by when financing is finalized.