29 May Holly Walther Lending Team: Fun Fact Friday – Earnest Money The Cliffnotes
Holly: Hey guys, good afternoon. It’s Holly and little miss…well…still know Daisy. She remains at our Lakehouse and promises she’ll be back with us next week. But I wanted to bring you this week’s Fun Fact Friday. This week we’re going to discuss Earnest Money. We’ve had a lot of questions about it lately and while your agent will be the best person to explain it to you, I want to give you some cliff notes.
So basically “Earnest Money” – it is a sum of money negotiated between you and the seller that is provided at the time of contract. As long as you meet all the contractual timelines, your earnest money is not at risk. In the event that you don’t meet your contractual timelines are performed as promised. It is some good faith money for the seller and its money that they would get to keep if you don’t meet the contractual timelines.
As far as financing with earnest money, whatever money you give at the time of contract as your earnest money, it is applied to the bottom line that you owe at the closing table. So a lot of times people say, can I use it for my down payment and or closing costs? The easy answer is yes, it’s not really applied to the down payment and or closing, it’s just applied directly to your bottom line, reducing your cash due at closing. So as always, I’m always here for your questions. Hope you have a fantastic weekend and we’ll see you next week.