Vol. 05 | What is the down payment?

What is the down payment?

How much you aren’t borrowing for the loan. Say you are borrowing 80% of the purchase price than the 20% that you physically have…is the down payment. It goes to the bank. The down payment is separate from the offer binder and the purchase and sale deposit... however both will be brought to closing table. The purchase and sale deposit must be given at the time of signing to the listing agent to be put in escrow. You may deduct how much you give as p&s deposit from how much you must bring to the closing table for your down payment. For Example, If you’re down payment is, let’s say, $75,000… you put down $1,000 for your offer binder and you are depositing $27,500 at p&s then you must bring a check to the closing table for 75,000 less 28,500 … or $46,500… for those horrible at math like me.