THE QUICK FACTS ON EARNEST MONEY
When you execute a contract to buy a home, you will offer some earnest money to the seller. The contract specifies when you need to provide the earnest money to the seller or seller’s agent and this is normally within a few days of contract execution. This check will be cashed within 24 to 48 hours of being provided, so make sure the money is in your account when you write the check. At closing, the earnest money is applied towards any down payment and/or closing costs that you might have. If you are doing a “no money down/no closing cost” transaction (rare these days), the earnest money comes back to you at closing.
REASONS YOU MAY LOSE YOUR EARNEST MONEY
Instead of a closing, a contract can end with either a…