Once you’ve agreed on a price with the seller, you can put down ‘earnest money’ to demonstrate your commitment to buying the home. It shows that you’re serious and you’re ready to buy.
Earnest money is a deposit that you put down at the time you enter the contract (however, it’s not a down payment ). This money is given to a neutral party and put in a trust or escrow account. You can put down as much as 5% of the selling price for earnest money. Most deposits are between 1% and 3% of the purchase price. Earnest money may give you additional time to secure financing since the seller knows you’re committed.
Putting down earnest money will give you and the seller confidence that you’ll go through with the purchase.
Results of the mortgage affordability estimate/prequalification are guidelines; the estimate isn't an application for credit and results don't guarantee loan approval or denial.
All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Other restrictions and limitations apply.