Ways to Protect Your Earnest Money Deposit

In the initial excitement over making an offer to buy a new home, buyers often pay little or no attention to how their earnest money deposit is handled.

That lack of attention could cost a home buyer dearly. Before writing that check, ask your real estate agent or lawyer about how she handles deposits to make sure your hard-earned money is secure. The check should not be cashed until your offer is accepted. It should be deposited into a trust account. Moreover, find out how you can get that money back if you end up canceling the transaction or it otherwise doesn’t close due to, perhaps, seller default. Continue to ask questions until you are satisfied with the answers.

Because there is so much money involved in a real estate transaction and lots of buyers with little experience or knowledge about the process, crooks are always on the prowl . . . read more about protecting your earnest money deposit.

More Articles by Elizabeth Weintraub:

• Best Time to Lock a Loan Rate
  
• Hiring a Buyer's Agent
  
• Tips for Writing Purchase Offers

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