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Use earnest money as closing costs

Posted on: 19th Nov, 2012 01:04 am
Hi there… I have read the 4155 manual of HUD thoroughly and am pretty certain that my earnest money can be used for closing costs. I am giving $3K earnest money and would like this to be applied to closing costs. Can anyone confirm this or that they actually did this?
Hi Panama,

You're right when you say that the earnest money can be used at the closing. The earnest money is held in escrow and applied at the time of the closing.

Take care
Posted on: 19th Nov, 2012 01:14 am
Hi Panama,

It is absolutely true that the earnest money can be used at the time of closing in order to pay the closing costs. You can ask your lender to use the money in your earnest account at the time of closing.

Thanks
Posted on: 19th Nov, 2012 07:20 pm
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