Whats “earnest money” and how much do I need?
When you sign an offer to purchase, you will be asked for earnest money- that is, money that shows you are serious about wanting to buy. Usually, you will be asked to write a check for 1% to 2% of the sale price made payable to the title company closing the transaction. When the contract is accepted, this money will be deposited in a special escrow account. At closing , your earnest money will be included as part of your down payment. If you back out after full loan approval and all contingencies are removed then you may forfeit the full amount.
When you sign an offer to purchase, the seller will expect the offer to include earnest money – that is, money that shows you are serious about wanting to buy. If your offer is accepted, your earnest money will be held in an escrow account until the time of final settlement. At closing it will be included as part of your down payment. Please keep in mind that if you back out after all contingencies have been removed; you will forfeit the full amount.
When you sign an offer to purchase, your Agent will ask you for earnest money— that is, money that shows you are serious about wanting to buy. Usually, you will be asked to write a check for 1% to 10% of the sale price. This money will be held in a special escrow account. If your offer is accepted, your earnest money will be included as part of your down payment. If your offer is not accepted, you’ll get back all your earnest money. But keep in mind that if you back out, you may forfeit the full amount.
