How much earnest money should you put down

June 1, by Cornerstone Mortgage. To show the seller that you are serious about your offer, you decide to put down an earnest money deposit. How do you know how much you should put down and what determines the rate?

Putting down an offer, how much earnest money?

According to the Missouri Bar Consumer Law Resource Guidebefore you make your deposit of earnest moneyyou must get the following information:. By getting this information you can determine what amount is a fair and affordable for you to put down. One factor of how much you may have to put down in earnest money is how well the housing market is doing. On the flip side, if there is a high demand for houses, you may have to put down a higher deposit of percent to remain competitive with other offers.

Regardless of how the housing market is, a typical deposit is percent of the home purchase price.

If the home has been on the market for a while and the sellers are eager to sell, then you may be able to negotiate a lower deposit. When you go through the steps of getting pre-approved and making your home offer stand outlenders and sellers will be looking at how much you can realistically afford.

If you need down payment assistanceyou will need to negotiate with the seller the amount of earnest money to put down since that amount will be going towards your down payment and closing costs.

When you how much earnest money should you put down a purchase agreement with the seller, make sure that you and the seller agree on how your deposit of earnest money will be handled if the deal falls through. Illinois Residential Mortgage Licensee. Brought to you by Jweb Media.

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What are the Policies in Your State?

How much earnest money should I put down on a two million dollar home? - Trulia Voices

According to the Missouri Bar Consumer Law Resource Guidebefore you make your deposit of earnest moneyyou must get the following information: How long has the house been on the market? Is the price within your borrowing capacity, as pre-approved by your bank?

Has the seller disclosed all known problems with the home? Does the real estate contract meet your objectives and account for contingencies? What is the Housing Market Like? How Much Can You Afford?

How Much Earnest Money is Enough?

Make Sure You Have a Refund Agreement When you make a purchase agreement with the seller, make sure that you and the seller agree on how your deposit of earnest money will be handled if the deal falls through. Get a Home Mortgage Today Call Cornerstone Mortgage for More Information. Licenses Disclosures Privacy Security Privacy Notice.

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