Earnest Money: Where Does It Go? – Arizona Mortgage Team – Earnest Money – an earnest payment (sometimes called earnest money or simply earnest, or alternatively a good-faith deposit) is a deposit towards the purchase of real estate or publicly tendered government contract made by a buyer or registered contractor to demonstrate that he/she is serious (earnest) about wanting to complete the purchase.

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 · Earnest money is typically required by a buyer at the signing of a purchase contract. Understand why it is required and how much is enough.. Having a mortgage loan denied at closing is the worst and is much worse than a denial at the pre-approval stage. Although both denials hurt, March 18, 2019 Read More.

Don’t let the mortgage contingency clause blow up your home sale – If the buyer is unable to find a mortgage that meets the requirements of the contract, the buyer is allowed to walk away with the earnest money. The seller is protected in two ways. First, if the.

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The earnest money deposit is usually 1 to 2 percent of the purchase price, but sometimes sellers could set a flat amount. There are different regulations on the earnest money limits depending on the state.

Earnest money is the money you pay soon after a home seller has accepted your offer on a home. How much earnest money you pay varies, but it’s typically 1%-3% of the sale price of the home.

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An earnest money deposit is what you give to the seller of a home in good faith. What you need to know. Rate search: compare mortgage rates and Offers.