Monday, August 8, 2011

Is the Earnest Money Part of the Down Payment?

We received a very big response to our email tip last week suggesting that agents explain the basics to their prospects and clients. In order to help out a bit more, here is an additional question that buyers often ask us.

Is the earnest money part of the down payment?

Here's how to answer that question. "Yes, the earnest money deposit you make when you submit an offer is part of the down payment. You pay the earnest money to show the seller that you're serious about the offer. If they accept your offer, the earnest money is subtracted from the amount your lender requires as a down payment."

Answer that question before your clients and prospects ask, and watch the trust build.

And don't forget to tell them:

  • It doesn't cost a buyer anything to use a real estate agent.
  • Any agent can sell any house. You don't have to use the agent whose name is on the sign.
Most of your competition is NOT telling their clients these things - that's why they are always asking us.

Despite what you may have read or heard, knowledge is not power. SHARING knowledge is power. Share your knowledge of the real estate business with your clients and prospects. They really don't know the answers to the basic questions we all assume they know.

Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:

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