Understanding Down Payment And Earnest Money

Dated: 11/01/2017

Views: 23

https://www.realtor.com/advice/buy/do-i-need-to-make-a-ull-down-payment-with-my-purchase-offer/?iid=rdc_news_hp_carousel_theLatestImage title


Most buyers will admit that one of the biggest concerns when buying a home is when to have the money for the down payment. At what point in the process are you to have the full amount? Many would be surprised to know that the entire down payment does not have to be made when an offer is made. However, you may need to include an earnest money deposit with your offer. And you will need to provide the remainder of the down payment at closing.

What is earnest money as opposed to a down payment? The biggest difference is the earnest money deposit is relevant to the home seller and the down payment is relevant to your lender. The earnest money deposit tells the seller you are committed and helps fund your down payment while the down payment is the amount your lender requires you to put towards the purchase of the property.

Learn more here.

**article provided by realtor.com.

Latest Blog Posts

10 Upgrades Under 1000 That Increase Home Values

A clean, well-maintained home in tiptop condition will yield maximum profit when it comes time to sell. However, you don’t have to shell out the big bucks to make sure your house is in

Read More

Make An Offer Like A Boss

These 10 money- and time-saving steps can help you craft a winning bid.Number One: Know your limitsYour agent will help you craft a winning offer. You can trust your agent’s advice on price,

Read More

Look At Your Home Through A Buyers Eyes

Selling your home is one of the most tricky parts of owning a home, really. There are always little projects that you meant to get to and didn’t, and things that probably weren’t perfect, but

Read More

Investing In Your Home Which Updates Return Best

You’ve lived in your home a little while and you think you sort of understand how it should flow. You’re starting to see the warts and little bits of rough that people tend to gloss over when

Read More