Earnest Money Question

Runky00 · ‎12-06-2014

I was required to put down 1% of the purchase price of the home as earnest money. I made the check out to the real estate company and understand it will be cashed. The question I have it what happens to that money when I close? I did not have to make a downpayment because I am using the 100% financing thru NFCU and the builder is paying the closing costs.

BigBS · ‎12-06-2014

The earnest money should be returned to you at closing unless there are other costs not covered by the seller or your financing program.

Score: EQ(809) EX(819) TU(800)
INQs: EQ(7) EX(16) TU(8)
Last INQ: 13 Jul 23

Total Credit Limit - $2.0M

Runky00 · ‎12-06-2014

@BigBS wrote:
The earnest money should be returned to you at closing unless there are other costs not covered by the seller or your financing program.

Thanks! I was not sure how that worked.

StartingOver10 · ‎12-07-2014

^^^Exactly right, it is returned to you. All the money is brought to closing, you're EMD included. All expenses/charges and all deposits/credits are shown line by line on your HUD1. Any excess funds are returned to you right at closing when the other funds are disbursed.