When purchasing a home, you'll encounter plenty of jargon. In real estate, terms like ratification and earnest money are discussed before you even make an offer on a home. Plus, mortgage lenders have their own language to discuss how you'll be paying for the largest investment of your life. Although buying a home can be daunting, learning some of the most common terminology can help with each step of the process.
When you make an offer to purchase, you'll need to include an earnest money deposit as part of your written agreement to show the sellers that you are "earnest" in your intent to buy their home. The amount is typically 1-3% of the purchase price, so on a $200,000 home you can expect to pay roughly $2,000. This deposit will