Now that you’re in the attorney review and inspection time period, it’s time to gather funds for the 2nd earnest money check. Typically these funds range between 2% – 5% of the purchase price. Check your contract for the exact amount of earnest money needed for your particular deal. Remember that the 2% – 5% earnest money fee is the TOTAL amount of earnest money due so when you pay the 2nd earnest money check you need to deduct the 1st money check from the total due.
For instance, if the home you’re purchasing is $500,000 and we negotiated for you to pay 5% in earnest money, the total amount needed would be $25,000. If your initial earnest money due was $1,000 then the 2nd earnest money check would be for $24,000.
The second earnest money check is usually due 2 business days after the attorney review and inspection time period ends. Typically, the due date for the second earnest money check is about 2 weeks after the contract is executed. It’s important that you start gathering the funds for your second earnest money check now so the funds are available when you need them. Usually, it’s acceptable to pay the earnest money using a personal check, but check your contract to verify that a certified check is not required. We’ll let you know when it’s time to drop off the second earnest money check and where to drop it off.
As a reminder, the earnest money is part of your down payment. So, if you were planning to put down $50,000 as a down payment and your total earnest money paid was $20,000 then you will only need to bring an additional $30,000 to closing for your down payment.
If you have any questions, please call us at 312-600-7510 or shay(at)buyselllovechicago(dot)com.