Thank you so much for watching Becky! If you have any questions about offer strategy, don't hesitate to ask. I do my best to be pretty responsive on our RU-vid Channel Or you can always email me directly craig@powerrealtyboston.com
Hey Craig! I have a question is the sum of the first 2 deposits part of the mortgage down payment? Also, is the appraisal based on the purchase price or the mortgages price? Thanks!
Hi Joey, thanks for your message and sorry I didn't see this sooner! Excellent questions. Generally you are correct, in most transactions the first two deposits are part of your final down-payment. Usually it's a $1000 earnest money deposit, and then your deposit at P&S will bring the total earnest money up to 4-5% of the purchase price. This isn't a hard and fast rule. For example I just did a transaction like this where the buyer is using a VA loan for 0% down financing. However we still had them put deposits down in an effort to show available funds and, ultimately, show a stronger offer. The appraisal is based on the purchase price. The bank is judging the property and considering "OK if this buyer stops paying the mortgage and we have to foreclose, are we underwater?" Meaning "Are we still owed more than this property is worth?" I hope this helps a little bit. Thanks for watching, and feel free to ask any other questions!
