What is Earnest Money and How Does It Work?

What is Earnest Money and How Does It Work?

Q: My mortgage loan officer is saying that earnest money is the $1000 that I gave to my Realtor/Title when I signed my purchase contract. She wants a copy of the cancelled check, saying that she would give me credit for it when I go to closing or credited towards my downpayment. Does this sound correct?


A: While I’m not sure that I understand your question, I will go ahead and give you an explanation of “earnest money.” As you indicated, earnest money is the deposit that you put down when you signed a contract and made an offer on the purchase of a home. These funds will be credited to you at the time of closing when you will be required to pay the down payment and other closing costs.

It sounds like your Realtor wants a copy of the cancelled check to provide to escrow or possibly to complete their in-house transaction file. Your Realtor is doing their job in making sure that escrow has a copy of the payment to ensure that you will be credited at the time escrow closes. Of course, if your offer on the property is not accepted for some reason your earnest money (deposit) should be returned to you. Hope this helps.

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RE/MAX REALTY CENTER, Real Estate in Wisconsin

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Please feel free to contact us for any of your residential or commerical real estate needs including an online market if you are a seller, or finding a home if you are a buyer.

Our real estate focus in the  Waukesha County, Milwaukee County, Lake Country, Jefferson County, Dane County, Dodge County and Washington County areas. Several agents in the office also their IRES designation (International Real Estate Specialist) so they can assist you with all your real estate needs in Wisconsin, the USA or anywhere in the WORLD!

When you are seriously looking or just browsing at real estate in Wisconsin, RE/MAX REALTY CENTER, Real Estate in Wisconsin, is the BEST resource to help you with all your needs and questions, whether a first time home buyer, relocating to or from the beautiful LAKE COUNTRY area, looking to invest or explore foreclosure opportunities or just thinking ahead to the future. 

Lisa Bear is the broker/owner of RE/MAX Realty Center, Real Estate in Wisconsin (262-893-5555) is an experienced real estate agent in Waukesha County and the entire Milwaukee Metro area. Lisa thinks "outside of the BOX" and encourages her agents to do so as well. If you want creative options and exceptional marketing and service - look no further! 

The RE/MAX Realty Center Office, has experienced agents with expertise in luxury home marketing, lake property experts, foreclosure and short sale specialists, investment and property management brokers and commercial brokers. 

Our agents areas of service include, but are not limited to:
The prospering communities of Waukesha County including Delafield, Waukesha, Oconomowoc, Pewaukee, Waukesha, Sussex, Wales, New Berlin, Dousman, North Prairie, Mukwonago, Chenequa, Menomonee Falls, Brookfield, Elm Grove, Okauchee, Eagle, Muskego and Merton. 

Great municipalities in Milwaukee County including Milwaukee, South Milwaukee, Wauwatosa, Hales Corners, Greenfield, Glendale, Franklin, Bayside, Brown Deer, Cudahy, Fox Point, Greendale, Shorewood, Oak Creek, St. Francis, West Allis and Whitefish Bay. 

The hometown favorites of Washington County, Jefferson County and Dodge County including Watertown, Hartford, West Bend, Germantown, Jackson, Richfield, Ashippun, Lake Mills, Jefferson, Johnson Creek, Slinger and Erin.

There is no place like "WISCONSIN LAKES"

If lake living is what you desire then Lake Country is the place to be! If you are thinking about buying waterfront property in Wisconsin, a little time invested in learning about waterfront living will pay back sizeable dividends in matching your expectations to realities. 

 Lake Country Living on one of Waukesha Countys great lakes as a full timer or vacationer is a must and there are some great lakes to choose.  Nagawicka Lake, Pine Lake, Oconomowoc Lake, Beaver Lake, Okauchee Lake, Pewaukee Lake, Moose Lake, North Lake, Lake Keesus, Lac La Belle, Upper Nashotah, Lower Nashotah, Upper Genesee, Lowe Genesee, Middle Genesee, Upper Nemahbin, Lower Nemahbin, Fowler Lake, Golden Lake, Pretty Lake, Silver Lake, Waterville Lake, and Crooked Lake. Great lakes of the surrounding area also include Lake Michigan, Rock Lake, Big Cedar Lake, Little Cedar Lake, Pike Lake and Lake Ripley.

Your best source for Lake Country Living is RE/MAX REALTY CENTER, Real Estate in Wisconsin

RE/MAX REALTY CENTER, Real Estate in Wisconsin, 262-567-2455 or 262-893-5555,  offer online markets, listing package and FOR SALE BY OWNER (FSBO) options, MLS search access, buyer agency and marketing that will exceed your expectations, all with outstanding service!  

Your home purchase or sale is likely your largest investment, be sure you have an good agent you can trust! Real Estate in Wisconsin is an excellent investment, prices are superb, selection is great and rates are outstanding!!!

Ask us about our preferred vendors -- from lenders to help you finance your new purchase to contractors to help maintain!