What is earnest money with regards to home mortgages?

What is the purpose of this money?What is earnest money with regards to home mortgages?
Earnest money refers to the ';deposit'; you provide when making an offer on the property you are purchasing. It is not related to the mortgage at all except that it is listed on the 1003 (Mortgage Application) as part of the property transaction.





Someone may be using that phrase to get you to pay some sort of application fee for a mortgage application. You may want to find a mortgage provider who does not charge an application fee...there are lots of 'em...





Me2Me2Me3@yahoo.comWhat is earnest money with regards to home mortgages?
a quick web search came up with lots of results but this is the best one i could find for you.
It lets the seller know you are serious about buying the property. The seller keeps the money if you decide to pull out of the sale without a valid reason.
It is a deposit given to the real estate agent to show the seller how serious you are about buying the home. Someone said it is usually $500-$1,000, but its usually more like 1-5% of the sale price of the property.





The lender will take this into account on your asset statement, but it has no other impact on your loan.
earnest money is what you put with your offer when you intend to purchase a property. It shows the seller that you are serious about the purchase and don't intend to back out unless there are problems with the property that aren't already disclosed. Usually the earnest money payment is $500 - $1000. If the seller turns down your offer, you get your money back (the check is not cashed). If the seller accepts your offer, the realtor cashes your check and then will put that money towards your down payment. It's not a negative thing to put earnest money down, we did when we bought our house just a few months ago and everything went really well.