Today’s post is focusing on: How soon should I put money into escrow? Are you ready to learn a thing or two? It’s only a few hundred words no big deal.
So you have been looking and looking and finally found a home you love, your dream home, maybe? What is the best way to ensure that you secure that home? How soon are you contractually obligated to deposit your EMD (Ernest Money Deposit) into escrow?
Before you start searching for homes you should have a Pre-Approval letter from a qualified mortgage broker or direct lender then connect with a real estate agent who is a neighborhood expert and knows how to help you save money either nonrecurring closing costs including loan and escrow fees or a price adjustment while making sure you get what you want. This can add up to tens of thousands of dollars or more out of your pocket.
Once you’re Pre-Approved and your Realtor helps you identify the place you have been looking for, it’s customary to deposit 3% of the property sale price into escrow within 72 hours. Your first transfer of funds into escrow is known as earnest money deposit. It doesn’t have to be a wire transfer although typically is. It could be a check hand delivered or carried by a pigeon. As long as the dough hits the escrow account the seller shouldn’t care how it gets there.
The amount of earnest money deposited is negotiable, and typically the rule of thumb in California is a 3% of the total purchase price. This amount tells the seller that the buyer is serious and ready to buy the property. This EMD is usually refundable to the buyer as long as the buyer operates in good faith within the agreed upon contingencies periods. In most cases, if the buyer cancels the agreement within the contingency period they will collect 100% of their EMD and move on to the next property.
Buying a home can be a terrifying, exhilarating, and exciting process. It’s the largest purchase that most people make in their lives – I get it. If you reap the knowledge of a qualified agent and take the proper steps, this process is going to go smoothly.
This article is courtesy of Zac Stiehl BRE: 02033096 of The Shelhamer Real Estate Group
Los Feliz Real Estate | Los Feliz Homes For Sale | Los Feliz Houses For Sale
This article, How soon should I put money into escrow? was provided by Zac Stiehl of The Shelhamer Real Estate Group. If you are selling your Los Feliz home, I have a comprehensive marketing plan, including preparing your Los Feliz home properly that will help get your home sold in less time and for more money. Call me at 213-267-4219 or contact Zac to discuss how I will get your home sold.
For a mortgage, Pre-Approval contact Joe Tishkoff, from Skyline Home Loans