Now that you’re in the attorney review and inspection period, it’s time to start gathering funds for your second earnest money deposit.
How Much Do You Need?
- The second earnest money deposit is typically about 5% of the purchase price.
- Check your contract for the exact amount due for your particular transaction.
- If you’re purchasing in New York City, the 5% earnest money is usually the total amount required, so you’ll subtract the amount already paid with your first deposit.
- If you’re purchasing in the suburbs, the 5% is often in addition to the first deposit.
If you’re unsure how much is needed, let us know, and we’ll confirm the exact amount for you.
When Is It Due?
- The second earnest money deposit is usually due two business days after the attorney review and inspection period ends.
- Typically, this means the second deposit is required about two weeks after the contract is executed.
Preparing the Funds
- Start gathering the necessary funds now to ensure they’re available when needed.
- Most contracts allow you to use a personal check for the second deposit, but some may require a certified check—be sure to verify what’s specified in your contract.
Dropping Off the Check
We’ll notify you when and where to deliver your second earnest money deposit.
Earnest Money and Your Down Payment
Remember, the earnest money is part of your down payment. For example:
- If your total planned down payment is $50,000 and your total earnest money is $20,000, you’ll only need to bring an additional $30,000 to closing.
If you have questions about this process, feel free to reach out to us!