Earnest money?

Question

When buying a house is the earnest money deposit part the actual cost of the home or is i seperate.

Answer 1

yes they count it in

Answer 2

The earnest money is also called the good faith deposit. It shows sellers that you are serious and want to purchase their home. If the offer is accepted, the earnest money that you paid will come off the top. You wont need to finance this amount and it goes towards your closing costs. For example: if your estimated closing costs are $10,000 and you paid $2,000 in earnest money, your closing costs are reduced by the $2,000 meaning you only need to come up with $8,000 at closing.

Answer 3

Yes. It is part of the actual cost.This amount can be deducted from the sale price of the house. It is a nominal initial payment before entering in to an agreement to buy the house.

Answer 4

it is good faith money holding the home till the lender has got you a loan. and yes it goes toward the down payment fee and broker fees. but in most cases is not refundable. it also holds the house for only you so no one else can purchase it .

Answer 5

It's part of the cost, a token amount you put up "up front," as a promise to complete the transaction.

Answer 6

It is used at closing so helps pay your closing cost or down payment so you have less to borrow. So it doesn't matter if you give them more it just puts it at risk if you get cold feet.