Question

The customer has decided to purchase a home instead of renting. The price of the home is $750,000 and the customer intends to put down 20% and obtain a mortgage for the balance.
The customer explains that he will need the $150,000 down payment in 30 days. The best recommendation to the customer is to liquidate his:

A. growth stocks and blue chip stocks immediately in the amount of $150,000 to obtain the necessary cash down payment
B. growth stocks and blue chip stocks in 30 days in the amount of $150,000 to obtain the necessary cash down payment
C. retirement accounts in the amount of $150,000 to obtain the necessary cash down payment
D. Net Worth in the amount of $150,000 to obtain the necessary cash down payment

Answer 1

Answer:

A. growth stocks and blue chip stocks immediately in the amount of $150,000 to obtain the necessary cash down payment

Explanation:

The customer wouldn't want to get the stock cashed out now, so he doesn't have to worry about the stock or market having a huge decline and so, he can't buy the house.