Post # 1
Fiance and I are buying a home. Our cooling off period ends midnight tonight and we need to pay a deposit of $2,000 tomorrow. What exactly does this deposit cover? Does it cover fees or part of a mortgage or what? Have you had to pay a deposit? I ama bit confused about it!!
Post # 3
- Wedding: November 2011 - Palma Sola Botanical Park
We made a $1,000 earnest money deposit to be held by our agent’s title company. My understanding is that it is disbursed as part of the closing costs. So if you owe $5,000 in closing costs and made a $1,000 deposit, you would owe $4,000 at closing and the $1,000 would be disbursed as well.
Post # 4
What do you mean by “cooling off period”? We close on our home on Friday and I’ve never heard of this through our process. We had to pay earnest money right after going under contract. Is this what you are referring to as the deposit?
Maybe this is something that is different in Australia than the US …
ETA: We paid $11,250 in earnest money that we get back at closing to apply towards our downpayment.
Post # 5
- Wedding: October 2011 - Bed & Breakfast
We paid $10,000 in earnest money when we went under contract. That money will be applied to our downpayment at closing. Our amount is significantly higher than usual because we are in a short sale situation and used the earnest money deposit to convey to the sellers and their bank (which must approve the sale) that we are very serious buyers.
Post # 6
We had to pay earnest money like others, this just reduced the amount that we had to pay for fees and the downpayment later.
Post # 7
Your earnest money deposit is a deterrant to buyers from putting bids in on multiple homes at the same time and then walking away from all but one offer. The money can go toward any fee or amount owed (downpayment, closing costs, title company fees, etc). At least that’s the way it was explained to us when we bought our first house!