Earnest deposit

Home Forums Purchase Program Earnest deposit

This topic contains 4 replies, has 4 voices, and was last updated by  TTrumble 9 months, 1 week ago.

Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • #40952

    yunvmsbutter
    Member

    Can someone please explain how the earnest deposit is applied to the mortgage? If there is no down payment do you get those funds back at closing? If not how is it applied? I’m confused.

    #40953

    JPriceless
    Member

    your earnest deposit goes to homeowner’s insurance premium, prepaid interest on the house, property taxes, and title fees.

    #40955

    I specifically asked my MC could I deduct my earnest money from my closing and his response was expect to bring the full amount to closing. They also held that to me when they reviewed my bank statements to make sure I had enough to bring to closing. I would expect them to refund me at closing or drop my closing amount, but I haven’t received confirmation yet.

    #40961

    yunvmsbutter
    Member

    Yes that is exactly what I am confused about. My realtor just keeps saying the purchase price does not get reduced but your earnest is rolled into the mortgage. You have to get credit for it some kind of way.

    #40971

    TTrumble
    Member

    Hello yunvmsbutter,

    As the workbook notes in the section on Minimum Required Funds, “Earnest money is often required by the seller as a deposit to hold the property until inspections can be completed and the loan application approved. Upon closing, the earnest money is applied toward the required pre-paids.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic.

Follow us on Facebook RSS Feed Follow us on Twitter