Dates, Deadlines, and Earnest $ when Under Contract to purchase a new home15 May Monica Breckenridge
Congratulations. You are now under contract on your new home purchase. The contract will include many dates and deadlines for items that must be done by a certain date. These dates include things such as when you must complete the inspection and appraisal. As the buyer you can terminate a contract at anytime prior to your dates and deadlines on the contract and still get your earnest money back. For Example, if you terminates a contract because your loan approval did not go through and you terminate before the loan objection deadline, then you can get your earnest money back. If you terminate after your deadline, the seller is usually able to keep the earnest money.
The first thing we need to do after going under contract on a house is put earnest money down. The amount of earnest money typically depends on the sales price. $1000 to $2000 is standard unless the home is higher priced. The earnest money is consideration for the deal and shows that the buyer is working in good faith to buy your house. The earnest $ is usually held by the title company or the listing broker's office. You will get a receipt for your earnest money.
At Pink Realty we have a transaction coordinator that keeps track of all our dates and notifies the agent so they can be aware. If we don't have full loan approval by the date of the loan objection deadline, we will attempt to extend the deadline. However most sellers want the buyers to have some skin in the game and may not extend. So understand there is always a risk that the seller won't extend. If they won't want to extend and you don't want to take a risk on losing your earnest $ then you can terminate the contract before the deadline.
As your buyers agent we will look out for you and make sure no deadline is missed.