Here’s how earnest money works and how much you’ll need as a homebuyer.
Most first-time homebuyers have no clue what earnest money is because nobody tells them about it. Earnest money is essentially a buyer’s collateral. It shows that the buyer is serious, has cash to put up to buy the home, and wants the house.
Most times, earnest money deposits are between $500 and $1,000. However, the price is usually higher in new construction homes.
It’s basically a credit that’s used at the end of the transaction to assist you with closing costs and other expenses. The earnest money is credited back to you once the deal closes.
If you have any questions about earnest money or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
