Is An Earnest Money Deposit On Huntsville Real Estate Really Necessary?
Your Huntsville real estate agent may say that you must provide earnest money when making an offer for a home. It’s usually in the form of a check, and the funds will be verified by your mortgage company prior to final approval of the loan.
This earnest money reassures the home seller you’re indeed serious about the offer you’re making. Once the terms of the deal are worked out between you and the seller, the earnest money is placed in an account held in trust until your loan closes. Then the money will be used for your down payment and closing costs.
What if the Deal Falls Through?
If the deal falls through at any time, any cancellation fees are paid out of the earnest money. The remainder of the money continues to be held in trust until you and the seller agree on the disbursement of the money. If the deal is canceled early in the process, it’s usually a simple matter of the seller signing over the deposit to you.
