How To Finance a Home, Understanding Earnest Money Codemark TV- Episode 16

How's it going everybody I'm Mark MacInerney
president and CEO of Codemark Financial you
think these are scripted these are
freestyle baby man I didn't know I was on the Marko
flashback and if you're resourceful enough
you might be able to see who I'm talking
about anyway so we talked about
pre-approvals we're now into the real
estate transactions there are money's
investments that you have to make into
this portion of it
what are they we said the other day there's
three of the right earnest money , option fee and inspections
so we're going to
talk about earnest money today earnest
money is your good faith to the seller
to show hey I know you're going to take
your house off the market or put option
pending while I go to try to qualify for a
loan here's some earnest money
The earnest money goes to the title company doesn't get
written out to anybody but the title
company so that is assuming that the
transaction closes you get that earnest money
back credited as your bottom line to your
closing costs now how much is earnest money
earnest money is one percent one
percent of whatever the sales prices
that you offered now as I said if the
loan closes you're earnest money is
credited to your bottom dollars if you
mess up in your loan
well it's possible you can lose your earnest
money alright you'll get to a point
where let's say it's a bad transaction
and you're saying hey I want to get out
its maybe after your financing period
then the timeline is up
maybe the seller may not release the earnest money
here's kind of a catch there as well
about earnest money that people don't
understand even if you request to get
the money back and the seller says no
it's not actually that they get it
either
just kind of stays tied up in escrow
with the title company so it ends up just
being a
canceled out situation so anyway you're
not gonna have a transaction like that
because it's going to be easy why because you'll do it along
with us look next time we'll talk
about the option fee and then we'll go
on into the inspections so on and so forth
alright until then I'm Mark MacInerney
president/ceo of Codemark Fiinancial
catch me every Friday Facebook Live
lunch with Mark and i'm always here
on Codemark TV

How To Finance a Home, Understanding Earnest Money Codemark TV- Episode 16

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