I Want to Buy a House: When Do I Put Down My Deposit?
This is an important question for buyers and will have a different answer across state lines. In Massachusetts, you are generally expected to put down monies at three different times during the transaction process. All of these monies will add up to make your complete deposit.
Here are the times that you will need to have funds ready to put down toward your home purchase:
1. When you make the Offer. In Massachusetts, an offer is not binding without some money to back it up. So a small deposit is necessary to go along with the offer. This is called your Earnest Money Deposit.
2. When you sign the Purchase and Sale Agreement. In the state of Massachusetts, the Offer is separate from the purchase contract, which is called the Purchase and Sale Agreement (P&S). The P&S is the formal document that defines all the terms of the purchase and all of the responsibilities of the buyer and seller. When you sign the P&S, you put down a P&S Deposit to bind the agreement.
3. When you close on the purchase of the home. Finally, when you go to the closing table and sign the final documents, you will make the remainder of your Down Payment.
In some special cases, you may be required to place additional deposits; however, the general process involves the three deposits described above. All three add up to make your total Down Payment on the house.
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Are you in need of an agent to help you with the home-buying process? Give me a call: (508) 982-0686. I'll be happy to help you!
Kathryn Acciari, REALTOR
RE/MAX Professional Associates - Sturbridge, MA
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Kathryn Acciari, Brand Ambassador
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