Tag Archives: earnest money deposit

Earnest Money Deposit, or “Good Faith Deposit”

Earnest Money Deposit, or “Good Faith Deposit”

In today’s tight real estate market, if you’re looking to purchase a home, you will most likely have to make  an Earnest Money Deposit (EMD), also known as a “good faith deposit.” You are not required by law to make a good faith deposit, especially if you are using no-money down Virginia financing, but if you want to show the seller that you are really serious about buying, it’s highly recommended.  Continue reading

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The Real Estate Contract: What is the earnest money deposit and how much should it be?

The Real Estate Contract: What is the earnest money deposit and how much should it be?

The time has arrived. You’ve found the home of your dreams and are prepared to make an offer. Now what? All real estate contracts must be in writing and a seller will not accept a formal offer without an Earnest Money Deposit (EMD). Earnest money is a deposit made to a seller showing the buyer’s good faith to proceed in a transaction. The EMD is an important part of the home buying process as it confirms to the seller that you are a legitimate and committed buyer. Without an EMD, a buyer could potentially make offers on several houses taking them off the market until they decide on their favorite. Continue reading

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