What is Ernest Money?

Earnest Money Deposit on your new home purchase

When you write an offer to purchase your Western New York dream home you will place an “earnest money” deposit.

This deposit shows the seller that you’re serious about the offer to purchase the property. The amount of earnest money deposit varies based on the type of property being purchased.

The sales contract will dictate who holds the earnest money. Usually the seller’s real estate agent will deposit the earnest money in a trust or escrow account until closing. At closing, the earnest money is applied to the purchase price.

Need Help Purchasing a Home?

Are you a first time homebuyer? If you are there are tons of resources on this site for your use in deciding important aspects of the purchase of a home including:

• How Buyers Can Save Money (and aggrevation) on their Niagara Falls Home Purchase
• Choices too much for today’s home buyers?
• Show me how to own a home!
• Excellent reasons to not purchase a Home
• Erie County First-time Home Buyer Program
• Why you should pre-qualify for a mortgage before you start your WNY home search!