Rhayward, my colleagues have already provided excellent explanations of earnest money and good faith. I strongly suggest that you discuss the amount of your deposit with your attorney. Here's why:. you can lose your deposit (or may have to sue or negotiate to get it back) if the deal blows up and the seller feels that you did not act in good faith throughout the mortgage application and closing process. Generally, I think it's best for a buyer to deposit on contract only as much as is needed to show the seller that they are genuine (acting in good faith). But this amout is subject to negotiations.
For more information or assistance, I can be reached directly at 917.699.0183. Follow me on twitter @mdenniston247.
I value your feedback, please hit the thumbs up if my reply was helpful. All the best.
Michael Denniston l Cell: (917) 699-0183
Residential Home Funding, Corp.
Licensed Mortgage Loan Originator l Sales Manager
6901 Jericho Turnpike Ste. 219 | Syosset, NY 11791
Main: (516) 605-1733 | Fax: (888) 881-2557
NMLS # 24076 | Company NMLS # 34973