Escrow amount when signing contract (real estate, lender, how much)

[skapur]

How much do we normally put in escrow account when singing contract? is there a %age?

[wileynj]

Usually a $1000.00 with the signed contract and the check is typically made out to the real estate compnay you are working with. Don't give anymore than that!

[skapur]

This is the escrow deposit amount once the contract is signed.

[MoorestownResident]

In this market as much as you stand to lose. Normally $1,000.

[skapur]

Are you sure guys? just $1000? How will the seller sign a contract for just $1000?

[wileynj]

Originally Posted by skapur

This is the escrow deposit amount once the contract is signed.

depends on what you agree to... I paid $1000 down and the rest at closing..some say $1000.00 down another say 9k upon fully executed contract. You'll need to aks your realtor or you attorney for advise..see what they recommend..preferrably your attorney : )

[skapur]

what do you mean fully executed contract? When buyer and seller agree on an offer?

[wileynj]

Originally Posted by skapur

what do you mean fully executed contract? When buyer and seller agree on an offer?

when first presenting an offer, include $1000 down. Seller will agree or disagree and if they agree..they sign. Now it goes to attorney review..the contract will bounce back and forth between attorneys. Once both parties agree to the "final" contract...then you set up the inspection. Then back and forth between the attorneys again. Usually you don't have to pay anything more than the $1000 until closing.

[Irish Eyes]

We did $1000 with the offer and $9000 after attorney review. We wanted a later closing date and the seller asked for 10%. We were comfortable doing that because we understood why they asked. We had a good attorney that we trusted and relied on to guide us. I always thought the 10,000 thing was standard.

[MoorestownResident]

Don't let anyone tell you how much to put down. Do what you want to do unless you positively have to move then put down a little more. Never put down what an agent wants you to put down You and your lender will decide what is the right amount for downpayment, the upfront escrow is only a good faith deposit. But it does depend on what you are buying. If you are buying a $700K house or above then you should put down a reasonable amount or it suggests you cannot afford the house.