I have to put money down? Is that the down-payment?
Earnest money is a deposit in a real estate transaciton that goes to the escrow company once you have a fully signed purchase agreement for a property. In most cases, the earnest money is credited towards any costs the buyer would need to bring at closing, such as down-payment or closing costs.
However the earnest money is actually the Seller’s remedy for a buyer breeching the contract. Meaning, the buyer is showing the seller that he or she is serious about making this purchase and that they are willing to put some money on the line to prove that. There are many safeguards in place for that earnest money, but if a buyer breaks the contract outside of those protections, they could be putting that money at risk. In other words, the seller may end up getting that money if a buyer doesn’t stick to the terms of their agreement.
So, make the right move and call, text, or email me... Dani Carpenter, for more information about earnest money.