Earnest Money

Earnest money is yesteryears firm handshake.

We like it. We want to buy it. Here is our offer to purchase and with it, our earnest money check.

How much Earnest Money do You Need?

Like many other answers regarding real estate-that depends.

1%, 2%, none, or an option.

What is the right answer?

The right answer is basically dominated by local custom. Sounds quaint doesn't it?

"What if the deal goes bad...can I get my money back?"

The Rules of Being Earnest

This is where it becomes important that home  buyers and sellers act in " earnest" measures to get the home buying/selling process to its completion.

Buyers and Sellers must complete their respective   pieces of the contract in earnest-fulfilling the contract for all their obligations. There are rarely few exceptions.

As a Charlotte homebuyer, even if you do your part to the letter and the seller fails on their part, there is no instant refund.

Both parties have to agree to its release with signatures. Or off to the local claims court it goes.

The earnest money is held in a regulated trust account, not in our pocket. All guidelines are set forth by the NC Real Estate Commission.

Home Buying-Get Ready and Win!

Get a LOAN APPROVAL (not pre- approval) for the offer price prior to submitting a contract.  This helps you on your ability to negotiate as well as giving you the peace of mind you need to stay in your financial comfort zone.

From the sellers viewpoint-Would you sell something to someone-just because they say they can afford it?

Of course not.

Get the loan approval letter.

This will help you in contractual time constraints placed upon the loan process (which is normal).

Secondly, all contingencies on the contract to purchase should be met in a timely fashion.

Allowing such contingencies to be removed from the contract so that things may proceed to closing.

This includes, inspections, appraisals, surveys, repairs and loan approval.

But in reality its not about the earnest money, its about buying the house.

When it is all said and done, you will see your earnest money on the HUD-1 statement being applied towards your home purchase.