Why Do I Have to Give Out My Social Security Number When I Buy a Home?
Winnetka IL and Chicago North Shore Suburbs


I have often been asked this question when working with buyers, even ones that are seasoned in the process.  In this day and age, people are wary of giving out personal information and for good reason. Identity theft is one of the fastest growing crimes in the country and someone who is using your number or identity can cause a lot of problems for you.

When working with people who are buying a home in Winnetka, IL or nearby, one of Money signthe contractual steps involves setting up an interest bearing escrow account for your deposit and earnest money. Typically, the buyer will give a deposit of around 5% of the purchase price to be held in escrow until closing.  The real estate brokerage who holds the listing opens an account for your deposit which will, of course, accrue interest.  Sometimes an attorney will hold escrow, but it's normally the real estate company that does this.  

In order to open an account in your name, your Social Security number is required on a W9 form with your signature.  We are then, required by law, to open a separate account in your name within one business day.  At closing, you will get a separate check for the interest on your deposit.  Even with Winnetka homes having an average price range of $1.3 million, your deposit may not generate too much interest, but it's enough to perhaps treat yourself to dinner or buy something new for your home.

If you have any questions about the home buying process, or are thinking about buying a home in Winnetka, Wilmette, Kenilworth, Northfield, or Glencoe, please call and I'd be happy to discuss them with you.


 

 

I sell homes in the following areas:

 

Winnetka & Northfield Homes for Sale

Winnetka & Northfield Condos/Townhouses for Sale

 

Wilmette Homes for Sale

Wilmette Condos/Townhouses for Sale

 

Kenilworth Homes for Sale

Kenilworth Condos/Townhouses for Sale

 

Glencoe Homes for Sale

Glencoe Condos/Townhouses for Sale

 

Glenview Homes for Sale

Glenview Condos/Townhouses for Sale

 

 

Margaret Goss GRI, CRS

Baird & Warner, Winnetka IL

847-977-6024

www.CallMargaret.com

Margaret.Goss@bairdwarner.com

 

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This post has been included in Illinois Real Estate News Cook County, IL Real Estate News Winnetka, IL Real Estate News
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3 Comments on Why Do I Have to Give Out My Social Security Number When I Buy a Home?

APR
09
2011
762,198 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Interesting.  It is typically it is 3% here and escrow holds the monies.  As far as I know it isn't interest-bearing either.
6:44pm • #2
APR
11
2011
1,929,096 Points 155 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

We still do that in Oregon as well, but they are trying to change that, they are trying things left and right in our state. The latest attempt is they are trying to do away with this requirement here in Oregon. They want to give illegals the right to buy a home in Oregon and have bank accounts. They have already made it so the can get a drivers license and a in-state tuition rate to our state colleges. (I just don't get it)

12:33pm • #3
485,320 Points 52 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Jane - we don't have "escrow companies" here so the brokerage holds the monies. 

Todd - Sounds like Oregon is on a roller-coaster
6:04pm • #4


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Margaret Goss, Winnetka Realtor Winnetka & North Shore IL Homes for Sale

Winnetka, IL

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Baird & Warner Real Estate

Address: Baird & Warner - Attn: Margaret Goss, 549 Green Bay Road, Winnetka, IL, 60093

Cell Phone: (847) 977-6024

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