08/20/2021
Mortgage terms can be new and confusing to first-time homebuyers! This is why we're starting Glossary Fridays - where we define a new term for you every Friday, right here on our page. ๐๐ค๐
Today's term is earnest money. Earnest money is the money a buyer pays towards a house, right after the accepted offer. The money is 1-3% of the sale price and eventually goes towards closing costs or down payment. It is paid up-front to ensure you're serious about buying the house. If the sale falls through (for whatever reason), a buyer does get the earnest money back.
Come back next Friday for another term and let us know what words you want us to explain in the comments.