How much earnest money should I put down on a house?
Mar 15, 2023
The amount of earnest money you should put down when purchasing a house will depend on several factors, including:
- The local market: In some markets, it is common to put down a larger earnest money deposit to show that you are serious about purchasing the property. In other markets, smaller earnest money deposits are more common.
- Your financial situation: Consider how much money you are comfortable putting down as an earnest money deposit. Keep in mind that the earnest money is typically applied towards your down payment and closing costs, so you will need to have sufficient funds available to cover these expenses.
- The terms of the purchase agreement: The purchase agreement will typically specify the amount of the earnest money deposit, as well as any contingencies that must be met in order for the deposit to be refundable.
As a general rule, it is a good idea to put down as much earnest money as you can comfortably afford, as this can show the seller that you are serious about purchasing the property. However, it is important to carefully consider your financial situation and make sure you have sufficient funds available to cover the closing costs and other expenses associated with purchasing a home.