Our home buying progress

[Anonymous]

Well, after 2 extentions on our contract to straighten out some last minute details... (the final appraisal and a two week period of missing bank statements from my husband's checking account), it looks like we will finally be closing on our new house this Friday!  We signed our closing disclosure yesterday, so we are in our three day wait right now. We are so excited and can't wait until Friday!  )))

[Sbrooks1]

I'm so clueless! How much is an earnest deposit? I hope to do USDA, what do I need to have saved to pay all these fees

[Anonymous]

Ernest deposit is also known as a good faith deposit that you will pay when you sign a purchase contract.It just reassures the seller that your serious and won't be signing any other contracts elsewhere.Usually $500 is all you need.If it's a new build home the builder usually will require quite a bit more.This deposit will be deducted from your closing costs so basically you get it back.

[StartingOver10]

Actually the EMD varies tremendously and is negotiated by the parties at the time of the offer.

In my area for a home that is $300k or less the EMD is $2500 to $10,000 normally.  I have seen more - but never less. 

The EMD is applied to your down payment at time of closing. If you are VA and you have a 100% loan, then the EMD is applied to your closing costs.  

If you have no closing costs because the seller and/or lender are paying them for you, then you get a refund of the overage at closing.

^^^having said the above, each area is different. I haven't seen a $500 deposit in my area since the 1980's to early 1990's. In high cost areas (my area is not high cost) I'm sure the EMD's are higher than what they are here.  It does vary widely. 

[tehpud]

Awesome and congrats. 

My progress has been similar, but shorter in time.  I already knew the home I wanted to buy when I pre-qualified.  

We are closing date buddies!  I close on 07/22/16 too!!!!

[Anonymous]

We are in the final stages for our USDA loan (guaranteed). House was 157,900 we settled for 161,000 with seller paying 4% of prepaid and closing costs (4% was the number from our lender). USDA is 100% financing so no downpayment. Out of pocket has been $500 earnest money (this is the amount our realtor said is typical for our area and price range). 500 appraisal fee and 350.00 for home inspection (optional). Appraisal and earnest money will be credited towards closing costs. House appraised at 161,000 so rolling in closing costs was not a option for our loan.