 Buy an expensive house or a modest one? |
| I make $4K a month after paying taxes, have no debt and have an excellent credit score (820 FICO). I'm considering buying a house for $330K with 3% downpayment. I was approved for the loan and ... |
|
 Where should I move in London? |
| I'm moving to London and I will be working in Richmond. I'm in mid-20s and want to live somewhere that is close by but would be fun for me. So, i want a fun hip area.... |
|
 My life is ruined.? |
GOOD NEWS: In 2005 my 1998 honda civic was finally paid for. I had 26k in the bank. No debts. No obligations.
BAD NEWS: In 2006 I made the stupid mistake of buying a 100k condo and an acre ... |
|
 Does an email count as written notice? |
| I'm sending an email to our landlord (basically saying 'if you dont do what you've been promising, then we're going to withold rent') and I know that you need to give written ... |
|
 Who has left their rent slip this week? |
| o.k so all the christmas preesies are costing too much now.will have to make it up next week.... |
|
 I don't work and have no means of income, can i get Section 8? Who will pay for the full price of rent? |
I can't pay because I don't have no means of income whatsoever, I don't collect unemployment, don't have welfare or nothing.
Additional Details
I can't get a job ... |
|
 Can i make my roommate pay for damage her pet has done? |
| Me and a roommate are moving out soon and going our separate ways. During the tenancy she wanted a dog and i said i didn't. she assured me she would take full responsibility for it, including ... |
|
 I signed a buyer's agreement in Texas with my realtor.Together we didn't find anything.Can I be sued? |
| I found my new home by myself one day. The next day another realtor took me to a close by neighborhood (same builder).This realtor ended up on my contract that I signed since the builder knew about ... |
|
 I listed my home with a realtor today but i changed my mind? |
| I signed documents to list my home and my girlfriend freaked can i get out of this?... |
|
 If your landlord decides he wants to sell his property? |
| What is the situation? Can he just come along and show people around while you`re sitting there watching the telly? Are you obliged to let him in? Is it right that strangers can just barge in and ... |
|
 I would like to buy the house I am currently living in but I think that the asking price is a bit to high.? |
| How do I go about trying to persuade the owner to bring down the price. There are a lot of things that need to be fixed in the house. Do you think that once the inspection is done that the home owner ... |
|
 Is it possible that a mortgage company will lower your interest rate because u will lose ur house otherwise? |
| My debt to income ratio is too high right so I cannot refinance my home for a lower rate. I have a 9.99% and I cannot afford payments anymore. Has anyone had their mortgage co. lower their interest ... |
|
|  |
schila | Earnest Money for a New House!!!!!!!!!!!!!? |
I need some advice with the following:
My husband and I are planning to buy a new house that hasn't been built in Houston, Texas.
The cost of the house is $230,000.00. They are "giving us" $10,000.00 in incentives, but they are asking for $10,000.00 as earnest money. Everybody that I've ask about it, tells us that the amount is just outrageous.
What do you think?
Additional Details
KL is talking about escrow....What's escrow???? |
 |
 
Amanda H
 |
First, $10K is a bit high for an earnest money on 230K. Some ask for up to 3% or so, but even that is under $7K. (this, of course, is in MY AREA, so it may vary.)
That said, on new construction sometimes they ask for more, becuase you will be 'tailoring' the home to your needs and they risk doing that and then not closing.
Now, you asked what "escrow" is, so you must be a first time buyer? Escrow is the company that coordinates the closing of your home-- they are where you got to sign all paperwork, and they hold the earnest money or deposit for you. (You DO NOT give this directly to the seller.)
Some people think that the seller "gets" the earnest money, likes its a bonus or something. The escrow company holds it, and only if you were to default on yoru agreement by not following through with the sale for a reason NOT covered under your contingencies (Like, if you did it contigent on selling your old house and it didnt sell, you get to back out and you get to keep your earnest money.)
If this is a 0 down home loan, you would get your $10,000 back at closing (Unless there were some overages on closing costs and they deducted a little bit) in the form of a check from the escrow company.
If you are doing a down payment, the $10K would be credited towards that and you would just bring the remainder on closing day. (Like if you planned on 30K down you would just bring another 20K).
In other words, if you have 10,000 and this is th eonly thing to squabble about, there is no risk to you to use that 10K as earnest money. Just dont default on your purchase and sale contract or they could keep your money. |
|
newmexicorealestateforms
 |
I agree with Karen it sounds reasonable. Remember what an earnest money is for. An earnest deposit is nothing more than the money you are willing to risk in the event that you do not meet the terms you have agreed to in the accepted contract. In the event that you do not meet those terms bye bye earnest deposit. If on the other hand you meet the terms and you do the closing the accepted contract will show how the earnest deposit money will be applied at closing.
Buena Suerte |
|
KL
|
Not at all...most builders want a solid commitment before they start the construction. $10,000 is actually a pretty low Earnest Money Deposit...it's not even 5% of the total purchase price and this money will go towards the downpayment. It will be held in escrow until the house is completed and you close on your loan, so it's not like the builder is making money off it. |
|
Karen R
 |
Sounds reasonable to me for new construction that you will be making the color, fixture choices etc. |
|
Justin
 |
An escrow account is where the money is held until closing, usually by the seller, in this case builder. It is not at all outrageous to ask for a $10,000 EMD. This just shows the builder that you are serious, especially when it is a new build. |
|
mortgage help
 |
10,000 sounds reasonable. If you're serious about getting this house, it shouldn't matter. |
|
dcgirl
|
$10k in earnest money is not unreasonable. It's not even 10% of the purchase price and that was the standard less than 20 years ago. The earnest money should be deducted from what you owe at closing so as long as that happens, this is fine. |
|
Kathleen M
|
Considering the price of the house and where it is that really doesn't sound out of line to me. |
|
Tony
|
$10,000 sounds ridiculous! That value will change from market to market. Call a few agents and ask their opinion. If you know one or two, that might be a good test.
Another good source might be a Real Estate lawyer (although I like to limit my exposure to them...) |
|
sarkatick
|
$10K earnest money as in a deposit you deposit to secure the offer on the house. If you back out after a certain amount of days then you would lose the deposit money. It's normal to put 5-10K deposit on a new brand new built. Just make sure you read what you're signing and see how many days you have to back out just in case you change your mind. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
10 | 40 minutes(s) ago
| | | |
10 | 2 hour(s) ago
| | | |
10 | 4 hour(s) ago
| | | |
10 | 8 hour(s) ago
| | | |
10 | 11 hour(s) ago
| | | |
11 | 1 day(s) ago
| | | |
11 | 6 day(s) ago
| | | |
11 | 2 week(s) ago
| | | |
11 | 2 month(s) ago
| | | |
11 | 7 month(s) ago
| |
|
Homepage 
Financial
Forum 
Renting & Real Estate 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
