Getting Refund of Your Earnest Money
When buying a home there is one payment which you need to know you can in some cases get a full refund if the contract does not close. The earnest money payment which in many cases is 1% of the price you plan to pay on your next property to the seller.
This is not a down payment fee, is it part of the payments which are paid to the seller, so you can lock the deal and lock the price, and know your seller does not keep trying to find new buyers who may want to pay him more.
If for example during the inspection period, you do your checks and evaluations of the real estate property and find critical finding which cause you to cancel the contract, than you are still eligible for a full 100% refund of the earnest money which you have paid in advance at the beginning of the deal.
When paying the earnest money, you must know who you are giving the money to… You should not give an earnest money deposit directly to the seller, there must be an escrow fund which will keep the money until the whole process is closing and the earnest money is added to the down payment deposit.