What is the definition of "Hand Money" in real estate terminology?

Question

Once I close my on my house with the mortgage lender, does the real estate company refund the hand money I needed to finish the sales agreement?

Answer 1

I have never heard of the term "hand money". If you tell me a little more about it I might be able to help. You are probably using the wrong term.

Answer 2

You may be thinking of the term:”Hard Money” – the term is usually used in the phrase “hard money lender”. These are usually private investors that will provide a loan based on the value of the property, not on your credit score. These loans are expensive; much higher interest rates and high initial fees.

[e-mail]

Answer 3

"Hand money" is sometimes called the "earnest money deposit" or "good faith deposit". This is money you give to the listing agent to put in their office escrow account when you write the contract.. It is to show you are "serious" about purcahasing the property.

The amount of money varies depending on what is customary in your area. Here it is typical to give no less than $1000. In some areas the amount is a percentage of the contract price.

The money is credited to you at closing. It is used as part of your down payment or closing costs.

If you decide to back out of the contract for no reason the Seller gets to keep your deposit. If you decide to get out of the contract based on inspections or because you can't get your mortgage the money comes back to you.

Good Luck!

Answer 4

Hard Money are Private investors(Hard Money Lender) lend their own money on their terms. They decide the rates which always are high. They can lend to who ever they want to. They make their own rules.