#17: The first payment you'll make as a Homebuyer | Earnest money deposit
An earnest money deposit (also known as a good faith deposit) is usually the first payment you'll make towards homeownership, but they aren't talked about enough.
This deposit is usually required once a buyer's offer has been accepted, often within the same day or within a couple of days -- so as a buyer, it's important that you have the cash on hand in an account.
The biggest benefit to earnest money deposits is that it takes the home "off the market" and moves the listing from "for sale" to "under contract". This is good news for you as a buyer because it relieves the pressure of a) looking for more homes b) competing against other buyers and c) giving you an adequate amount of time to do your due diligence (inspections, appraisals, etc.) before you close.
In this video, I will address everything you need to know about earnest money deposits, which include:
1) When you pay them
2) Why they are needed
3) How much they are
4) If you can get them back
and more!
Thanks for watching and please share with an aspiring first-time homebuyer that you know!
Resources:
Biggest mistake I made in my homebuying journey: https://youtu.be/Yn-LsYujGtA
First time homebuyer loans:
https://www.maximizedmoney.com/first-time-homebuyer-loans
Instagram (we have lots of fun over here):
https://www.instagram.com/maximized.money
Podcast: Real Estate Prep:
https://www.maximizedmoney.com/episodes (available on all streaming platforms)
Ready to find the right real estate agent for you? Download my free checklist for questions to ask:
https://www.maximizedmoney.com/homebuyers-checklist
Want to get your finances together for your big home purchase? Join my free Homebuyer Goals Challenge:
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