is ernest money what you give to hold a contract on a property? do you get it back at closing?

Answer 1

It gets applied to the price.

Earnest money is what you give to make the contract legal in certain ways. It is generally just a nominal amount.

Answer 2

Hi there, let me give you a lenders opinion. Although both Realtors are correct. It really depends on the type of financing you get.

For example if you're paying closing costs and putting money down on the home. Your deposit will be credited towards these costs.

However, if you are applying and receiving 100% financing with seller paid closing costs, prepaid items etc. Your deposit will be given back to you in check form at the closing.

http://mortgagecounselor.blogspot.com

Answer 3

Earnest money is a show of good faith that you intend on making good the purchase, as intended in the contract formed.

Earnest money, although not required to form a binding contract, gets put into a non-interest bearing trust account and then gets applied toward your purchase.

Answer 4

Yes but goes toward the property at closing.

Answer 5

I hate to admit it, but Art has it exactly right. I'm a Century 21 Realtor! ;)