Profile picture for user88380841

Making a contract on a house.

Why does my Real estate agent ask me to deposite to an account? But when i ask him about the money what is it for he says that is for my part of my down payment. Then he says is to make sure that i have the money. But My question is when am about to do a contract for a house what are the thinks that i need?
  • January 28 2013 - Aurora
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Answers (3)

What your realtor is asking you for when you write an offer is called earnest money. That is part of your down payment and credited back to you at closing. It is used to guarantee to the seller that you are serious about your offer. Please talk to your agent and ask them to explain these things to you in a little more detail and if you dont understand, ask them to explain it again.
  • January 28 2013
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Profile picture for Faith Mormon
It is standard for your Realtor to ask for earnest money deposit that will be deposited into an escrow account once your contract has been ratified. He/She needs it while writing the contract to express to the seller that you are serious about your offer. Once you get to closing, the money can go towards downpayment, any extra closing cost that wasn't covered and etc. Basiclly it goes towards your settlement expenses.
  • January 28 2013
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Profile picture for Rushel Reed
Earnest money is more than just illustrating how serious you are.  Your contract is an Earnest Money contract, where the Seller's sole remedy, should you default, is the earnest money submitted with the offer.
  • January 28 2013
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