"Keep it Simple, Stupid"

OK OK, I'll admit I hate that saying- thanks to my mom who didn't think stupid was an appropriate word to describe anything- much less anyone, but I feel like it applies here so maybe she'll let it slide this time.... along with all of my punctuation errors.

THINK FAST, What's Earnest Money?
Unless you're in a career related to real estate the term "Earnest Money" may sound very foreign to you. Of course if you're anything like me, you'll just "Google" it and find out in a split second. (How did anyone function before Google?)

I could go on and on for paragraphs (YAWN), but instead let's keep it simple. Earnest Money as it applies to Texas Real Estate is a good faith deposit (made by a buyer) that is deposited into an escrow account at the title company within approximately 24-48 hours of your offer being accepted into contract.

A few good questions I've been asked:

• How much does it need to be?
• It really depends on the circumstance and purchase price. I've personally seen anywhere from $300-$5,000 in our market.
• Do I make the check out to the seller?
• No, make it out to the title company that will be closing the sale.
• Will it be cashed before our closing date?
• Yes, please be prepared for it to be cashed right away.
• What happens if I decide not to buy the house?
• If you back out during your option period (stay tuned for another blog topic on those!) your earnest money will be refunded to you less any inspection fees you may have already incurred. It gets a little more complicated after the option period, but your Realtor ® will be able to explain it- just ask!
• Do I get it back at closing?
• The earnest money is applied first to your downpayment and then to your closing costs. Any excess will be refunded to you.

Looking to buy or sell in the Wichita Falls area? I'd love to earn your business!
~ Tanya