What is an Earnest Money Deposit?

When buying a home it is important to understand each part of the process. One thing that can confuse some people is the need to pay an earnest money deposit and how that works with their downpayment.

What is an earnest money deposit? Why are you writing that check?

Simply put, earnest money is money you put out to show you're serious about making an offer. If your offer is accepted, it becomes part of your down payment. If your offer isn't accepted, it is returned to you.

This short video put out by loanDepot (a company I am not endorsing in any way, just sharing the information from) is a great, quick explanation to help you out!

Again, my sharing this video is not a suggestion to use this company, or an endorsement. When buying, do your research looking for a lender.

I do think the info in this video is very well stated and informative, however!

Comments

5 Fights Couples Have When Buying a House

When my wife and I bought our home in the Northern Kentucky area, it was quite an experience. We had a great Realtor® with whom I am now privileged to work. I can only imagine the things he must have thought about us, showing up to look at houses with our two young boys, talking about if a room was big enough...what was that smell...why would they put the switch over here...

Ah, those were the days!

Thankfully, we didn't actually fight (that I remember) about anything considering a house. We both had a concept together of what we wanted, and a price range. And outside of those things, I didn't care as long as she was happy. No really, I didn't! As long as I could have air conditioning and hot water, I was good!

However, that is not the experience everyone has.

Today, I am actually going to share a link that will take you to Realtor.com. The article was written earlier this year by Stephanie Barth, a writer, and contributor to several publications. She took this concept of…

When The Neighbors Don't Care

A home that isn't being maintained like others in the neighborhood can negatively affect your visual sense of appeal and in some extreme cases, even affect property values. It might be an overgrown yard, a fence in need of repair, excessive noise, unruly pets, paint peeling on the home or even a car or boat parked in front of the home that hasn't moved in weeks.

Most people want to be good neighbors and may be willing to correct an issue once it is brought to their attention. A practical, but possibly confrontational, solution is to contact the responsible person and describe your perception of the issue. However, they may not always agree with the same urgency and it might be necessary to seek other remedies.

An owner-occupant may be more sympathetic to the neighbors and willing to correct the issue. If you think the home might be a rental property, check with the county tax records to identify the owner. They may be unaware of the situation and welcome the…

Don't Let A Killer In

Carbon monoxide is a silent killer you don't want in your home but because it is colorless and odorless; you may not even be aware the deadly condition exists. The Center for Disease Control says more than 400 people in the U.S. die annually from carbon monoxide poisoning and over 10,000 require medical treatment each year.

Unmaintained furnaces, water heaters and appliances can produce the deadly gas. In addition, other sources could be leaking chimneys, unvented kerosene or gas space heaters or exhaust from cars or trucks operating in an attached garage.
The Environmental Protection Agency suggests the following to reduce exposure in the home:
Keep gas appliances properly adjustedInstall and use an exhaust fan vented to the outdoors over gas stovesOpen flues when fireplaces are in useDo not idle car inside garageHave a trained professional inspect, clean and tune-up central heating systems annually Headaches, nausea, vomiting, dizziness and feelings of weakness or fat…

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