Real Estate Information Archive

The Magic of Earnest Money

Once you have found a house you like and you are ready to submit an offer you must provide Earnest Money along with the contract.

Where Did My Earnest Money Disappear To And When Will I See It Again?

It is hard to understand why earnest money is required and how it works with your real estate transaction. This can make you feel anxious because you’re thinking “Gosh, I need that money so that I can pay my closing costs and make a down payment on my loan.”

Here are 6 facts about Earnest Money to help you understand what it is and how it works:

• Earnest money is a specific form of security deposit made in real estate dealings to show you are serious and willing to demonstrate an earnest of good faith about completing the transaction.

• Earnest money provides compensation to the seller if you decide to back out of the deal and are in violation of your purchase agreement.  

• Earnest money will be held in escrow during the contract period by a title company, lawyer, bank, or broker – whatever is specified in the contract. It does reappear! 

• The amount of the earnest money payment is set by the seller and their listing agent and can be a flat amount or a percentage of the purchase price.

• Earnest money does not typically show up on your initial loan document known as the Loan Estimate because the lender has to verify that it has cleared your bank account in order to show it as a credit there. 

• Earnest money you paid gets released from escrow at the time of closing and is used to help pay your closing costs and/or your down payment. All or a portion of it is often times refunded to you at closing if it is not needed.

Because I understand a lot of the TRICKS OF THE TRADE I can answer your questions before you worry about where your money has disappeared to! 

KNOWLEDGE IS CONFIDENCE

I want to be your guide and a valuable resource to you!!

If you or someone you know is thinking about buying or building a home please have them contact me.   

Judy Ingels

                            (719) 229-7999

Compare Some Key Benefits of Buying vs Renting

When considering whether to buy or rent a home there is a lot to think about. It is puzzling to try and fit all of the pieces together to complete your PICTURE!  

KNOWLEDGE IS CONFIDENCE

  5 questions to ask yourself before deciding on buying or renting

1. Will you be raising children, and if so, does an apartment or condo renting make sense?                         
2. How much can you can afford, and can you really afford to buy?
3. How much other debt do you have?  Do you have student loans? Credit card debt? 
4. What else could you invest in right now with your down payment money?
5. Are you buying simply because your friends are doing it?

Buying

• Creates possible long term wealth accumulation
• Has tax advantages
• There is the possibility of rental investment income
• Generates a greater feeling of security and stability
• With interest rates still low it may be cheaper to buy than pay high monthly rental rates
• Real estate as an asset has performed better than any other asset type in the last 30 years

Renting

• No downpayment is required
• No worry about mortgage commitments
• You do not need to worry about the cost of house and property maintenance
• Many buildings and condo complexes have fitness centers and swimming pools
• No worry of a real estate market collapse

Once you have thought it through and are confident about your choice, feel good about what you’re doing. Being positive is a must for anyone!

Let me be your guide if you or someone you know needs help with making this decision to buy vs rent!  

“To stay on course, we need a compass whether a person, guidepost, or sign"     Judy Ingels

719-229-7999 or judy@judyingels.com

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Your credit score is generally one of the most important factors lenders consider when deciding whether or not to extend credit to you. 

Do you know what effect your credit can have on your FICO score....and exactly what is a FICO score? 

A FICO score is a credit score that was calculated using one of the scoring models developed by Fair Isaac & Company. It can range from 300 to 850.

Components that make up your FICO score:

**35% is based on your payment history

**30% is based on the amount you owe

**15% on the length of your credit history

**10% on the types of credit you have 

**10% on newly opened accounts in the last 6 months

Here are 5 things that FICO considers when evaluating an individual's credit ~amount owed:

1. The total amount owed on all accounts you have
2. The different types of accounts you have
3. The number of accounts that have balances
4. The amount still owed on installment loans, compared to the original loan
5. How much of the total credit line is being used on credit cards and other "revolving" credit

KNOWLEDGE IS CONFIDENCE

I want to be your guide and a valuable resource to you!! If you or someone you know is thinking about buying or building a home and needs to get a loan please have them contact me.