Buying a Home Step 7: Earnest Money and Escrow

/

If you're buying a home in Washington State, you'll likely encounter the terms "escrow" and "earnest money." These are important parts of the home-buying process, and understanding them can help you navigate the transaction with confidence.

Escrow is a process where a neutral third party (an escrow company or attorney) holds onto funds and documents related to a real estate transaction until all conditions have been met and the sale can be completed. Earnest money, on the other hand, is a deposit made by the buyer to show their commitment to the purchase.

Here are some tips for home buyers in Washington State when it comes to opening escrow and earnest money:

  1. Understand the timeline: In Washington State, the timeline for opening escrow and submitting earnest money can vary by transaction. Your real estate agent or attorney can help you understand these timelines and ensure that you meet all deadlines.

  2. Be prepared to provide documentation: When opening escrow, you'll need to provide various documents, such as a purchase and sale agreement and proof of your earnest money deposit. Be sure to have these documents ready and available.

  3. Consider the amount of earnest money: The amount of earnest money required can vary, but it's typically between 1-3% of the purchase price. Consider how much you're comfortable putting down and make sure you have the funds available.

  4. Understand the refund policy: If the sale falls through, you may be entitled to a refund of your earnest money deposit. However, the refund policy can vary by transaction, so be sure to read the fine print and understand your rights.

Overall, opening escrow and submitting earnest money are important steps in the home-buying process in Washington State. By understanding these concepts and following these tips, you can navigate the transaction with confidence and ease.

Are you ready to begin the home-buying process? Whether your timeline is 3 weeks, 3 months, or 3 years, our team is here to help you every step of the way! Get started now by filling out our Ready To Buy Survey, and our team will reach out to schedule a call to discuss how we can support you on this path.