Updated almost 16 years ago on . Most recent reply
Bank Wants 10K Earnest Money
My realtor told me that in rder to buy a reo property the bank wants 1oK in earnest money. The arv is $400k, and i will be offering 15ok. I told him the most I would offer is 2k. He said that the banks ask for 10k because they figure if you are buying with cash is shouldn't be a problem, or else they will think your a flake. Is this true?
Most Popular Reply
Bottom line. If you are really all cash, then why not put up $10k on a $400k property? That is only 2.5% and standard is 3%. If you want stand out to the bank from all the rest, make larger EMD's.
I too stipulate that the EMD will be funded into escrow within 3 days of acceptance of my offer. Although I also show a POF so they know I can close.