WHAT ARE CLOSING COSTS?The down payment amount is the difference between the purchase price of the property and the
Buyers Guide: What Is The Earnest Money Deposit?
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.
- Awarded Best Of Truckee Tahoe in 2019 - Director on the Tahoe Sierra Board of Realtors 2020 & 2021 When you're looking to hire an agent to help you sell your home or find you a new one, you want to....