Question about earnest money?

[swtneka]

Ok so my builder is requesting 2k earnest deposit. My question is.... What happens too that money? Is it included in the loan or am I paying the base price plus the 2k that he requires at signing? Do I get this money back at closing? I have read just about everyone putting down earnest money but haven't read where it goes?

[adymax]

It goes into your down payment. If you have to bring 5k at closing for down payment they will subtract 2K you already provided. We already put 6K for earnest money for our builder. 

[deg757]

We did not do new construction, but we had to put $500 down in earnest money. We had to bring $8,000 to the table. They did not deduct our earnest money from the amount. They cut us a check at the table to refund the amount we had put down for earnest money. 

[Amythyst]

I just confirmed with my builder that my earnest money deposit of 5k goes towards any monies owed first... so she said it would be applied to my downpayment and my total amount due at closing would be less that earnest deposit.

[foofighter74]

Yeah, with new construction, the money will be applied to your down payment. 

[swtneka]

OK thanx everyone. so thats 2k i dont have to worry bout!

[adymax]

Yes. That's pretty slick if your builder will build your home only with $2K deposit. 

[Db366]

Our builder only required $1000,this might also just see because we are building in his neighborhood. I

[MrChairman]

We put down 7K in earnest money. I expect to get 98% of this back as the closing cost assistance we are getting covers the rest.

[swtneka]

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@MrChairman wrote:

We put down 7K in earnest money. I expect to get 98% of this back as the closing cost assistance we are getting covers the rest.

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Wow 7k?! What state r u using the assistance from?