Does Earnest Money Go Towards The Down Payment

Warning! Are You Sabotaging Your Mortgage Approval  | 214-945-1066 To Down Money Does Go Earnest Payment – Logancountywv – What Is The Difference Between An earnest money deposit And A. – If the deal goes as planned, the earnest money is usually applied towards your down payment. In the event you negate the contract due to one of the contingencies in your offer, such as the results of the home inspection, your earnest money deposit will usually be returned.

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Earnest money is a good faith deposit that is part of the down payment but should not to be confused with a down payment. When buyers execute a purchase contract, the contract specifies how much money the buyer is initially putting up to secure the contract, to show "good faith," and how much money all together will be deposited as a down payment.

Don't Make These Earnest-Money Deposit Errors | – Don't relinquish this money until you know you're ready to go through with. Your earnest money deposit isn't the same as the down payment on the. Also, if your sale does fall through, you and the seller must mutually void.

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