What Is Earnest Money? How Much Should I Set Aside?
Earnest 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 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you must forfeit the entire amount.
Earnest 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 .5% to 1% of the purchase price. When your offer is accepted, the earnest money is deposited at the title company and is credited back to you on your statement at closing. If you back out of a deal during the option period, the title company refunds the earnest money to you. If you terminate after the option period has expired, you typically forfeit your earnest money to the seller.
Earnest 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 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.
Earnest 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 1-5% of the purchase price (though the amount can vary). If your offer is accepted, the earnest money becomes part of the down payment or closing costs. If the offer is rejected, the money is returned to you. If you back out of the deal, you must forfeit the entire amount. TOP…
