how much money to put down at contract?

how much money to put down at contract?

It looks like we could be going into contract on a house early next week.

It was a private sale, no agents.

We told the seller we would give 5,000. down at contract and the rest (equaling 20%) at closing.
My lawyer called saying he got the contract but it said 5% down at contract. We don't want to lose the house over this. My lawyer said most people put down 5% as good faith. 5% is 20,000. Will we have a hard time getting all that money back if something with the house falls through?

How much did you put down at contract or how much are you planning to put down?

Re: how much money to put down at contract?

sometimes it depends on the type of mortgage you are getting - for an FHA for example, it may be 0 - 3% but for a conventional it usually starts at 5%. You won't lose your money if the deal falls through - you would only lose $ paid to attorneys, inspection, etc.

Re: how much money to put down at contract?

5% is standard, I've even seen 10% (I used to do house closings). The only thing you have to be careful of is that if the deal falls through due to something you did (you default somehow under the contract), the sellers have an argument that they can keep the DP.

Re: how much money to put down at contract?

5% is usually the absolute minimum you have to put down at contract. Most sellers want 10%.

Re: how much money to put down at contract?

Re: how much money to put down at contract?

We put down 5% at contract. But if you worked out something else with the seller you should only be obligated to do that.

Re: how much money to put down at contract?

Thanks everyone!!
We agreed upon 5,000. at contract so thats what it is going to be!!!!!

We should be going to contract on Tuesday or Wednesday!!!