OK, how does a binder work? Do you put one in with your offer? Do you put on in after they accept your offer? Can you get it back if the deal falls through before you even sign a contract? Does that money go toward your closing costs? Do you even have to put one down at all? I have no idea....
Kra5hnburn
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Re: Someone please educate me on binders!
nobody knows?
skew
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Re: Someone please educate me on binders!
from bankrate 'Binder -- A temporary insurance contract that provides proof of coverage until a permanent policy can be issued.'
basically, it is a written offer (drawn by agent) that details the property address, purchase price, down payment and parties names. the binder is submitted after the offer is accepted but before the formal contract is drawn and signed. you do not (at least we didn't) leave money w/ binder.
the CONTRACT is legally binding unless of course you are denied a mortgage, you lose a job, husband/wife dies etc... we gave a 10% deposit at contract.
butterfly20
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Re: Someone please educate me on binders!
usually if you went through a real estate co they would have the buyer sign the binder and leave a good faith deposit ( perhaps 100-500$)--- the binder usually states subject to atty review (which is a way to get out of the deal-) and usually says the contract must be signed by X date, otherwise it will be voided-
