Buyers Guide: What Is The Earnest Money Deposit?

Dated: January 22 2020

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           WHAT IS THE EARNEST MONEY DEPOSIT?

The earnest money deposit (also known as the initial deposit), is an important part of the home buying process. It tells the seller you're a committed buyer.

Assuming that all goes well and your offer is accepted by the seller, the earnest money will go toward the purchase price. In many circumstances you can get most of your deposit back if you discover something that you don't like about the home and decide to back-out.

The earnest money deposit is typically 3% of the purchase price of the home.

The earnest money deposit needs to be wired into escrow within 3 days of your offer being accepted (see timeline above).

After submitting your deposit, the funds are held in an escrow account until the home sale is in the final stages. Once everything is ready, the funds are released from the escrow account and applied to your purchase price.

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Hillary Barber

Hillary is a strong agent bringing past experience working with builders, investors, and second home owners to better help her clients needs. She is responsible for creating innovative marketing strat....

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