in a really hot market when making a offer on a home (180.000 home) what’s standard ofr earnest money to accompany the offer. how much should be offered after appraisal. 8)
this various a lot by area so probably the best source is your agent as to what is the local practice.
normally its a couple of thousand, but I have put $10k if I was an knew it was great deal and others were trying to make offers. This shows your seller you are serious!
30% below MAO at least.
Don’t forget, the “good faith” $ goes in escrow…NEVER EVER TO THE SELLER!
this is highly dependant on your geographic area and the stage of cycle that you’re in.
the answer is always as low as you can get away with. ask the seller how much is okay and then gasp at whatever he tells you. then just stare incredulously at him for 1 full minute and then ask if he’ll accept something less.
When we purchased both of our homes $500 was the recommended amount for earnest money.
first of all, i want to thank all of you for the advice. oru agent advised $5000 up front & we should have at least another $10.000 just in case. if this is correct, this money should come off the price of the property. does this sound correct 8)
That’s right…your (earnest) money is NORMALLY placed in escrow (in this case with your agents broker) . . . (and sometimes not even deposited). During closing (and on your good faith estimate) your deposit will be given back as a credit to what you owe at closing.
Great for you!! Congratulations on the purchase of your first!
THANKS- in a really hot market with a lot of buyers, need advice, can you win a bid with a VA loan as opposed with a conv. - also are VA loans longer to process
VA Loan same as any other pretty much. Just means the VA gaurantees the lender (more favorable for you). Also means you can get in with less money down!!
Contact a lender, get prequalified (make sure they know its VA) and make an offer!
THANK YOU 4 the great advice - I received my cert. of elig from the VA on sat. - will contact them on mon. - just asking though, does this mean pretty much that the VA will finance us 8)
The Certificate of Eligibility from the VA is just that – they certify that you are ELIGIBLE to use VA funding to purchase. IT does NOT certify that you QUALIFY for a mortgage or for a mortgage of a certain amount. It basically means that you have met the minimum military (or military-like – Public Health Service Officers, Military Academy cadets, NOAA officers, etc.) service time and that your VA benefit is not tied up on another property.
You still need to qualify for the lender’s loan. If you meet all the requirements, the VA will guarantee the loan. It is usually at a competetive rate and very low down payment…
Hope this helps…
THANK YOU, you have been VERY helpful 8)
You’re welcome – almost all major lenders do VA loans…good luck!
Hello, ? How long does it normally take for a Va loan to process. If in a offer we were pre approval 4 a conventionl loan & later find out we qualify 4 a VA loan, would this be considered a breach of contract. 8)
It has been years since I used my VA – 1996. At that time it only took a little longer than a conventional loan.
To my knowledge, being “pre-qualified” for a loan is not a binding contract, so there would be no breach.