Buying A Home
halfpin21
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Earnest Money Questions
Hi everyone! This is my first time posting here but I've been lurking since my wedding on the 30th. We're buying a home from a family member and we're excited about the process but I have a couple of questions with respect to earnest money.
1. How is the amount determined? I personally feel like the amount being asked is pretty high. The family member is willing to work with us but I want to make sure we're not getting a fast one pulled over on us.
2. What happens to the earnest money throughout the process? What is it applied to?
Any help you can give will be great! Thanks!
Re: Earnest Money Questions
Even if you are buying from family, you should also have a lawyer involved to protect your interests.
1K is enough for earnest money in some areas and much more in others. This is a local issue that vaires.
The earnest money is held in escrow until closing and then applied. Should you back out for non approved reasons - they keep the money. If they back out of the deal for non approved reasons - you get the money ack.
ETA: Two good books to read
Home Buying for Dummies and Mortgages for Dummies. They will help you understand the process and answer many questions for the first time buyer.
What is it applied to?
It's applied to the total you owe at closing. Let's say your total purchase price plus closing costs is $200,000. However, you put $10,000 down in earnest money. At closing, you'd owe $190,000.
Thank you!
The seller determines the price. Even though it is family, it is still a business transaction and they may not be willing to lose money for your benefit. You can ask for an appraisal (which you will need for your lender anyhow).
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