How to Not Regret the Paint Color You ChooseThe secret? It’s all about the lighting. Here’s how to get it right. ReadVisit houselogic.com for more articles like this.© Copyright

Dated: August 12 2019
Views: 175
Prospective new homeowners can often become confused by the strange-sounding terms used throughout the process of looking at homes, finding one they love, and wanting to actually buy that house. There are a lot of steps involved from looking to moving in. One of those steps at the decision-making stage is the earnest money deposit.
The earnest money deposit is important because it tells the seller of the house that you are a committed buyer with the money to go ahead with the sale.
Without the earnest money deposit, there would be nothing to stop a prospective buyer from making offers on many homes, which would result in them being taken off the market until the buyer decided which one they liked best - leaving the other sellers in the lurch. These days, most sellers insist on having a deposit of some kind as a part of accepting your offer.
Many people worry that this is an additional cost on top of all the other financial obligations involved in buying a home. The truth is that the money will go towards the down payment and/or closing costs when the sale goes through.
The only exception to getting all your money applied towards the sale is if it does not go through. If you change your mind, for example, there will usually be a fee involved, with a small percentage of the money forfeited. Be sure to check the contract and check with your realtor.
On the other hand, if you want to back out of the sale because the house does not pass the inspection and/or there will be too long a wait for the seller to redress the issues, you should not forfeit any money. Sometimes the seller might also discover that for various reasons, they are not allowed to sell the home. This could be because they are in foreclosure, have a tax lien on the house, or are not aware they are in a flood zone and need to follow certain rules and regulations when selling.
In general, it will be around 1% to 2% of the agreed-upon price for the home. You should have this money available before making a firm offer. If it is a lively market, they may ask for 3%, but they might also be willing to haggle on the price if they can be assured of a large down payment and quick sale.
Once you have signed the purchase agreement, the money will usually be put in an escrow account by the realtor, or title holder if you are opting for a foreclosed property. Never give the money directly to the seller. You should, of course, use only a reputable realtor and be clear about how they will hold the money.
Once the sale reaches the final stages, the money will be released from escrow and applied to your down payment for the house.
If the deal falls through, a small cancellation fee might be charged, especially if you change your mind.
The rest of the amount in escrow will be handled based on what is stated in the purchase agreement, so make sure there is a clause about this in the agreement.
The agreement should also state certain contingencies. For example, sometimes even pre-approved customers actually get declined for a mortgage in the end. In this case, you should be able to recover 100% of the earnest money deposit. Issues with the seller not being able to sell, or the home inspection, should also be stated in the clause to ensure you get back your full deposit.
Homes for Sale in Lafayette
==============================
Buying? ➡️ bit.ly/3bsanGy
FREE Home Evaluation ➡️ bit.ly/3eEQWvQ
==============================
Ted M. Daigle eXp Realty
Ph. 337-243-6108
1720 Kaliste Saloom Rd Suite B-2
Lafayette, Louisiana 70508
Ted M. Daigle | Realtor
995694847
==============================
About Ted Daigle – Realtor Growing up in Church Point, LA instilled values of hard work and dedication, which has carried over into every aspect of his life, including real estate. This Lafayette r....
How to Not Regret the Paint Color You ChooseThe secret? It’s all about the lighting. Here’s how to get it right. ReadVisit houselogic.com for more articles like this.© Copyright
How to Pick your Lender for your First Home or RefinancingYour lender is one person that can make or break you with finances towards your home. Before you become involved with anyone that will
Finding The Right Local Realtor In LafayetteIf you know your situation, have an idea of what you want for a home, and know what you need, you don't want to be the only one that knows. Finding
Avoid These Home Buyer Turnoffs and Sell Your Home faster You know you should avoid garish paint colors and weird additions if you’re trying to sell a house. However, did you know