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Jessah
I love my dogs :)
Member since 2/08 1344 total posts
Name:
Jess
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I have a question about money put down at contract
We are putting 10,000 into the lawyers account at signing tomorrow. Because we are doing a VA loan we are doing very little down. The lawyer explained that , that money will come off the purchase price of that house. Why can't we use that as part as our closing costs? I dont really understand how it works, can someone explain?!?
Thank you
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Posted 8/26/09 10:54 PM  |
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snowflake08
Love my boys!!!
Member since 8/07 5148 total posts
Name:
Laura
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Re: I have a question about money put down at contract
we did that today
we are putting 20% down so we put 10% today and 10% at closing
the $$ we put today gets held in the attorney's escrow account. It is for the buyer's safety. If you decide not to go through with the purchase, you get it back. from what i understand, years ago the money would go to the seller and then you couldnt get it back if you changed your mind
Message edited 8/26/2009 10:57:29 PM.
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| Posted 8/26/09 10:57 PM |
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twinkletoes807
Mommy's Girls! ♥
Member since 11/07 10116 total posts
Name:
Gabi
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Re: I have a question about money put down at contract
Posted by snowflake08
we did that today
we are putting 20% down so we put 10% today and 10% at closing
the $$ we put today gets held in the attorney's escrow account. It is for the buyer's safety. If you decide not to go through with the purchase, you get it back. from what i understand, years ago the money would go to the seller and then you couldnt get it back if you changed your mind
Actually, it is for the seller's safety. If a buyer chooses to walk away from a signed contract (fully executed) and there isn't something in the contract that invalidates it, the seller gets the money that was given at contract signing time.
Closing costs are basically a bunch of fees and taxes added together that must be paid in excess of the asking price of the home. In some states, people can ask that the seller pay closing costs. This is not how it works in NY though. HTH!
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| Posted 8/26/09 11:05 PM |
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snowflake08
Love my boys!!!
Member since 8/07 5148 total posts
Name:
Laura
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Re: I have a question about money put down at contract
Posted by twinkletoes807
Posted by snowflake08
we did that today
we are putting 20% down so we put 10% today and 10% at closing
the $$ we put today gets held in the attorney's escrow account. It is for the buyer's safety. If you decide not to go through with the purchase, you get it back. from what i understand, years ago the money would go to the seller and then you couldnt get it back if you changed your mind
Actually, it is for the seller's safety. If a buyer chooses to walk away from a signed contract (fully executed) and there isn't something in the contract that invalidates it, the seller gets the money that was given at contract signing time.
Closing costs are basically a bunch of fees and taxes added together that must be paid in excess of the asking price of the home. In some states, people can ask that the seller pay closing costs. This is not how it works in NY though. HTH!
Hmmmm, i'm wondering then why when we met with the attorney today and I asked him this, he said it was for our safety; that we want the money in escrow
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| Posted 8/26/09 11:08 PM |
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twinkletoes807
Mommy's Girls! ♥
Member since 11/07 10116 total posts
Name:
Gabi
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Re: I have a question about money put down at contract
Posted by snowflake08
Posted by twinkletoes807
Posted by snowflake08
we did that today
we are putting 20% down so we put 10% today and 10% at closing
the $$ we put today gets held in the attorney's escrow account. It is for the buyer's safety. If you decide not to go through with the purchase, you get it back. from what i understand, years ago the money would go to the seller and then you couldnt get it back if you changed your mind
Actually, it is for the seller's safety. If a buyer chooses to walk away from a signed contract (fully executed) and there isn't something in the contract that invalidates it, the seller gets the money that was given at contract signing time.
Closing costs are basically a bunch of fees and taxes added together that must be paid in excess of the asking price of the home. In some states, people can ask that the seller pay closing costs. This is not how it works in NY though. HTH!
Hmmmm, i'm wondering then why when we met with the attorney today and I asked him this, he said it was for our safety; that we want the money in escrow
Well, it is in an escrow acct for your safety in that, the seller can't just run away with your money and not sell you the house that you are in contract for. That is why the check wasn't written to the seller directly. But if a buyer gets cold feet and chooses to walk away from a properly executed fully enforceable contract, then they will lose their earnest money by walking away. Otherwise, there wouldn't be any point into putting money down on a contract, if there wasn't something to lose. 
ETA: Here is a website that explains it all clearly: Earnest Money
Message edited 8/26/2009 11:23:42 PM.
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| Posted 8/26/09 11:11 PM |
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Jessah
I love my dogs :)
Member since 2/08 1344 total posts
Name:
Jess
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Re: I have a question about money put down at contract
I understand that part totally but I dont understand why at closing that money has to be used towards the purchase price instead of towards closing costs since we have the option to put 0% down if we want
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| Posted 8/27/09 8:01 AM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: I have a question about money put down at contract
It CAN be used towards closing cost. Called Sellers Concession. We did it and that is what they called it.
Just tell them you want it used towards your closing costs.
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| Posted 8/27/09 8:56 AM |
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