Today’s article is zeroing in on: How quickly 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 searching and finally found a house you love, your dream home, maybe?
- What is the ideal way to guarantee that you secure that home?
- How quickly are you contractually obligated to deposit your EMD (Ernest Money Deposit) into escrow?
Just before you start searching for homes you should have a Pre-Approval letter from an experienced mortgage broker or direct lender then connect with a real estate agent that is a neighborhood expert and understands how to really help you save money – either nonrecurring closing costs including loan and escrow fees or a price adjustment while making sure you get what you really 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 find the place you have been looking for, it’s customary to deposit 3% of the property sale price into escrow within 72 hrs.
Your primary transfer of funds into escrow is known as earnest money deposit. It doesn’t have to be a wire transfer though 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 worry how it gets there.
The amount of earnest money deposited is negotiable, and generally, the rule of thumb in California is 3% of the total purchase price.
This amount tells the seller that the buyer is meaning business and ready to buy the property. This EMD is usually refundable to the buyer as long as the purchaser operates in good faith within the consented 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 place.
Buying a home can be a frightening, exhilarating, and exciting process.
It’s the most significant purchase that most individuals make in their lives, I get it. If you reap the knowledge of a licensed agent and take the right steps, this process is going to go smoothly.