What Is Earnest Money?
Buying a home can seem like a complicated and overwhelming process for anyone who is in the market for the first time. There are so many particulars that need attention. The team at Arrowhead Title, Inc . is here to make the process a little easier by filling you in on one piece of the real estate puzzle: earnest money. What Is Earnest Money? Simply put, earnest money is money you provide when you submit your offer to the seller - a deposit that shows the seller you are serious (or "earnest") about buying the home. Without this deposit, the seller may not trust you to follow through with the purchase and may not accept your offer. How Much Earnest Money Do I Need? There is no magic number for the amount of earnest money you should provide, but typically the amount ranges from 1-3% of the total sale price of the home. The amount of earnest money you put down should strike a delicate balance. If you put down too much, it may create complications with your mortgage ...