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Just to clarify, I currently have a home under contract and have given my agent $1000 money order for earnest money. My current bank account balance is around $5k, and I am told that I will need about $400 (in addition to money the lender already has) for closing. Closing date is 5 days from now, and the lender calls to tell me that the VA needs to be able to verify the source of all money in my bank account that I paid the earnest money from and that the closing costs will be paid from.
Not that I am hiding anything, but the closing date is quickly approaching, and I have sent them a declaration to explain, including where money was transferred into my PayPal account. Now they want to see the statement of people who transferred the money to me (!?)
First question, why in the world do they need to know this? I did not use these deposits as "income" to get the loan approval, and the lender is saying that the loan was not granted based on this money. Second question: is this weird or normal?
What else can I help you with?
What is the difference between a deposit and earnest money in a real estate transaction?
In a real estate transaction, a deposit is a larger sum of money paid by the buyer to secure the purchase of the property, while earnest money is a smaller amount paid upfront to show the buyer's commitment to the deal. The deposit is typically a percentage of the purchase price and is held in escrow until closing, while earnest money is often credited towards the down payment or closing costs.
Can you explain how earnest money works in a real estate transaction?
Earnest money is a deposit made by a buyer to show their serious intention to purchase a property. It is typically held in an escrow account until the sale is finalized. If the buyer backs out without a valid reason, they may forfeit the earnest money to the seller. If the sale goes through, the earnest money is usually applied towards the down payment or closing costs.
What is earnest money and how does it factor into the home buying process?
Earnest money is a deposit made by a buyer to show their commitment to purchasing a home. It is typically a small percentage of the purchase price and is held in escrow until the sale is finalized. If the sale falls through due to the buyer's fault, the earnest money may be forfeited. If the sale goes through, the earnest money is applied towards the down payment or closing costs.
What is earnest money and how does it factor into purchasing a house?
Earnest money is a deposit made by a buyer to show their serious intention to purchase a house. It is typically a small percentage of the purchase price and is held in escrow until the sale is finalized. If the sale goes through, the earnest money is applied towards the down payment or closing costs. If the sale falls through, the earnest money may be forfeited to the seller as compensation for taking the house off the market.
What is earnest money and how does it factor into the process of buying a home?
Earnest money is a deposit made by a buyer to show their serious intention to purchase a home. It is typically a small percentage of the home's purchase price and is held in escrow until the sale is finalized. If the sale goes through, the earnest money is applied towards the down payment or closing costs. If the sale falls through due to the buyer's fault, the earnest money may be forfeited.
What options are there for home buyers with no money down and no cash for closing costs?
earnest money
What is the difference between a deposit and earnest money in a real estate transaction?
In a real estate transaction, a deposit is a larger sum of money paid by the buyer to secure the purchase of the property, while earnest money is a smaller amount paid upfront to show the buyer's commitment to the deal. The deposit is typically a percentage of the purchase price and is held in escrow until closing, while earnest money is often credited towards the down payment or closing costs.
Can you explain how earnest money works in a real estate transaction?
Earnest money is a deposit made by a buyer to show their serious intention to purchase a property. It is typically held in an escrow account until the sale is finalized. If the buyer backs out without a valid reason, they may forfeit the earnest money to the seller. If the sale goes through, the earnest money is usually applied towards the down payment or closing costs.
What is earnest money and how does it factor into the home buying process?
Earnest money is a deposit made by a buyer to show their commitment to purchasing a home. It is typically a small percentage of the purchase price and is held in escrow until the sale is finalized. If the sale falls through due to the buyer's fault, the earnest money may be forfeited. If the sale goes through, the earnest money is applied towards the down payment or closing costs.
What is earnest money and how does it factor into purchasing a house?
Earnest money is a deposit made by a buyer to show their serious intention to purchase a house. It is typically a small percentage of the purchase price and is held in escrow until the sale is finalized. If the sale goes through, the earnest money is applied towards the down payment or closing costs. If the sale falls through, the earnest money may be forfeited to the seller as compensation for taking the house off the market.
What is earnest money and how does it factor into the process of buying a home?
Earnest money is a deposit made by a buyer to show their serious intention to purchase a home. It is typically a small percentage of the home's purchase price and is held in escrow until the sale is finalized. If the sale goes through, the earnest money is applied towards the down payment or closing costs. If the sale falls through due to the buyer's fault, the earnest money may be forfeited.
When closing a real estate deal what will the real estate broker do with the deposit?
The earnest money deposit is held in an escrow account until the closing takes place. At closing the earnest money is either credited to your side to add to your down payment or it can be credited back to you in the form of a check. If your deal does not close there are different rules in each state as to how the earnest money will be handled.
Can you explain how earnest money works in the process of buying a home?
Earnest money is a deposit made by the buyer to show their commitment to purchasing a home. It is typically a small percentage of the purchase price and is held in an escrow account until the sale is finalized. If the sale goes through, the earnest money is applied towards the down payment or closing costs. If the sale falls through, the earnest money may be forfeited to the seller as compensation for taking the home off the market.
What is the difference between due diligence money and earnest money in a real estate transaction?
Due diligence money is a payment made by the buyer to the seller to show serious intent and covers costs associated with inspections and investigations. Earnest money is a deposit made by the buyer to show commitment to the purchase and is typically held in escrow until closing.
What is an earnest money deposit and how does it factor into the home buying process?
An earnest money deposit is a sum of money that a buyer puts down to show their serious intent to purchase a home. It is typically a small percentage of the home's purchase price and is held in an escrow account until the sale is finalized. The earnest money deposit is a way for the buyer to demonstrate their commitment to the purchase and is often included as part of the offer to purchase a home. If the sale goes through, the earnest money deposit is applied towards the down payment or closing costs. If the sale falls through for reasons outlined in the contract, the earnest money deposit may be returned to the buyer.
What can you do if you do not have enough money for closing costs?
You can borrow it from your Whole Life cash value, sometimes you can finance it in, money back from the seller for closing costs, borrow it, etc.
What is the process for providing an earnest money credit to the buyer in a real estate transaction?
In a real estate transaction, providing an earnest money credit to the buyer involves deducting the amount of earnest money they have already paid from the total purchase price of the property. This credit is typically applied at closing, reducing the amount the buyer needs to pay upfront.
