What Is An Earnest Money Deposit?

At the time a written offer on a property is initiated, you will be required to make a depot in the form of a personal check. The amount deposited will be kept in the trust account of the listing Companies title company. The exception to this is the case of a builder on new construction. This money represents your sincerity in the attempt to purchase and is fully refundable if the offer is not accepted, if your loan is not fully approved or if some other condition of the contract is not met by the seller.

You should anticipate a minimum of $500 - $1000 for homes under $150,000. In homes over this price range, expect to deposit 1% to 5% of the purchase prices. This earnest money will be credited to you at closing as part of your down payment and/or closing costs.

If you have any further questions about earnest money contact Olathe real estate agent, Brad Papa today!