VIDEO – WHAT IS THE EARNEST MONEY DEPOSIT (EMD)?

One of the most common questions I’m asked is, “What is the Earnest Money Deposit (EMD)? It is really quite simple and if you have just under two minutes – I made a video for you all and hopefully, this explains it. If you have any further questions, please contact me here on this site or email, [email protected]. Also, if you’re in a place and can’t play the video, the transcript is written immediately below.  Hope you enjoy and thank you for watching (or reading).

All the best,
– Pey

Watch on YouTube here!

WHAT IS THE EARNEST MONEY DEPOSIT (EMD)? TRANSCRIPT: 

“Pey Behin, here, ready to explain what is the earnest money deposit (EMD).

Okay, so, what is the earnest money deposit “EMD”? It’s where both parties agree to the terms of the contract and sign off. You have about one week to deliver 3%, typically in the DC Metro area, of the purchase price to a title company. Typically, if your house is $500000, you have about a week to deposit 3%, which is $15000 to the title company. Now, the title company holds this money while you work through your contingencies. There’s a condo doc review period, if you’re buying a condo, you have the home inspection, you have financing, and you have appraisal.

Now, if you back out because of the contingency due the home inspection, you get cold feet, you can back out. This money is protected. It will be refunded to you. And if you go to closing, this money gets deposited towards your down payment. So, if you’re giving a 5% down payment, you bring 2% plus your closing costs to the closing table, and basically, that’s the EMD.

Email’s below. It’s Pey Behin, Instagram, Facebook, Twitter, Snapchat. Feel free to hit me up, ask any questions you have whatsoever. Thank you, very much. Until next time.”

For more information for buyers please take a look at:

1. WHEN IS THE BEST TIME TO BUY A HOUSE? 
2. FIRST TIME HOMEBUYERS
3. WHY GETTING PREAPPROVED IS YOUR FIRST STEP
4. DO I NEED A HOME INSPECTION? 
5. WHAT IS THE APPRAISAL CONTINGENCY?