Earnest money and Due Diligence

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This topic contains 2 replies, has 3 voices, and was last updated by  TTrumble 1 week, 1 day ago.

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  • #41562

    Tinalee7580
    Member

    Hello
    Ok… Great News! I got my qualification letter -corrected ! Hooray. So now I am house shopping but I am kind of confused on earnest money and due diligence. So by doing some research I understand that as long as you go through with the deal you get that back towards the loan. How does Naca credit that back to the loan? As a principal buy down or can those funds also be credited to buy down the interest rate?

    #41563

    jeszonline
    Member

    Hi Tinalee7580, the earnest fund will go towards the cash needed to close. Even though there is no closing costs for naca, there are still fees you need to pay, such as insurance, escrow insurance, taxes and escrow taxes, these fees can quickly add up, your earnest fund is credited after these costs are determined, and you will bring the difference to closing.

    #41568

    TTrumble
    Member

    Hello Tinalee7580,

    Just to add to jeszonline’s response, I have even seen some cases where the pre-paids were already taken care of and the buyer even got cash back at closing.

    Bottom line is you get your earnest money back at closing one way or the other.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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