Homebuyers, have you been thinking about purchasing a home and confused about what all those acronyms are such as EMD?
Hi, this is Ledeana with Homes by Strand, and EMD which stands for Earnest Money Deposit, which is the money that’s submitted to escrow once your offer has been accepted.
Now earnest money is not required, but it does show the seller your good faith effort to purchase the home. And in the market that we’re currently in, it is needed if you want your offer to be considered.
Now typically, in Earnest Money Deposit is between one and 3% of the purchase price. So if the home that you’re purchasing is 500,000, you would give between five and 15,000 to escrow.
Now my recommendation is that you wire the money to ask escrow. So if you want to speak with your escrow company on what the proper wiring instructions are, always confirm.
If you found this video helpful, please share. If you have any comments or want to know what any other acronyms mean, feel free to give me a call.
Thank you so much for watching. This is Ledeana with Homes by Strand where your dream is our passion. And I hope you have a great day.