WHAT IS DEPOSIT MONEY? HOW MUCH SHOULD I SET ASIDE?
Deposit money is money put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 5% to 10% of the purchase price (though the amount can vary if both parties agree). If your offer is accepted, the deposit money becomes part of your total payment or closing costs. If the initial offer is rejected, your money is returned to you. If your offer is accepted and then you back out of a deal, you may forfeit the entire amount.
