What
is earnest money?
Earnest
money is a good faith deposit
submitted with your offer
to show the seller that you
are serious about purchasing
their home. It is a required
part of the offer. There is
no set amount that is required
but the amount sometimes makes
a difference in the negotiation
process. Earnest money eventually
becomes part of the purchase
and will show as a credit
to the buyers on the settlement
statement drawn up by the
escrow company.
What
are closing costs?
Closing
costs are charges paid to
various entities during the
real estate transaction. They
can include escrow fees, document
preparation fees, cost of
an inspection and lender fees.
What
is a point?
A
point is equal to one percent
of the loan principal. It
is charged in addition to
the interest and fees at closing.
What
is title insurance?
Title
insurance protects against
loss from any defects in the
legal title, liens against
the property other adverse
claims. The lender usually
requires title insurance.
