1/29/2024 0 Comments Earnest moneyIf you pay via cash or your lender is unable to verify the earnest money came from you as earned income or seasoned money they will not be allowed to use it as a credit on the Closing Disclosure Statement and an amendment to the offer will need to be drawn up removing earnest money from the offer to purchase. Lenders do not want to see cash deposits. If you cancel the contract during the due diligence period, you will get a refund of your earnest money deposit, although you would lose any fee you paid for. Deposits from payroll, taxes, bill of sale items etc are acceptable. In addition any deposits listed on that account will need to be sourced and explained. ![]() You can also pay via money order or bank check, however, you will need to provide a 30 or 60 day transaction statement showing the money came out of your account. If a potential buyer decides to terminate the contract and. The Deadline for a Refund: Most often, earnest money is refundable during the due diligence period. Though, it can sometimes be lower or higher. In addition, some lenders may require a statement from your account from the date the check cleared going back 30 or 60 days. The Amount: As a general rule, earnest money is typically between 1 percent and 5 percent of the total residential real estate purchase price. ![]() Your lender will need a copy of the front of the check & of the back once it clears your bank. ![]() The best way is to pay via personal check. Your lender will need to verify the earnest money. Earnest money, or good faith deposit, is a sum of money you put down to demonstrate your seriousness about buying a home. When paying earnest money do not pay with cash.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |