Did you know that when you find a home to purchase, the contract will call for an “Earnest Money Deposit”? This is a “good faith” deposit that you are submitting with the contract to show the seller you are serious about purchasing their property. If you do not get the home financing, it is usually refundable to you if you make that part of your contract. If you do get home financing, the lender will apply this to the amount you need to close. Questions? Call me first!
Related Article Title: Earnest Money Deposits Question: How do Fannie and Freddie handle Earnest Money Deposits? Earnest Money Deposit Chart Answers: Freddie Mac – Earnest money deposit (EMD) When an EMD for a purchase transaction is used to qualify the Borrower for the Mortgage transaction, the Seller must obtain evidence that the EMD check cleared the Borrower’s account (e.g., copy […]