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Mortgage Broker Fort Lauderdale FL | Florida State Mortgage Group, Inc.

Florida State Mortgage Group, Inc. are mortgage brokers in Fort Lauderdale, offering a comprehensive selection of loan options. Call us at (954) 359-3000.

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What is an EMD When Buying a Home?

April 26, 2022 by Stephen McWillam

Buy a Home in Florida

An EMD or “earnest money deposit” is commonly known as a “good faith deposit” and represents the buyer’s good intentions towards buying a home.  This ensures the seller that an individual is serious about buying their home.  This gives the buyer additional time to get financed as well as conduct an appraisal, home inspection and title search prior to closing.  In many ways, this can be considered the down payment on a home or an escrow deposit.

How does an EMD differ from Closing Costs and a Down Payment?

There are several significant differences between an earnest money deposit, the down payment, and closing costs as follows:

  • EMD – an upfront deposit made at the beginning of the home purchasing process and deposited in an escrow account
  • Down payment – used in conjunction with the home loan, the down payment helps to determine the amount to be financed.  In other words, a larger down payment results in a smaller loan amount and vice versa. Thus, you’d be able to save more.
  • Closing costs – the costs involved in the home purchasing process, including:
  • appraisal fees
  • credit reporting charges
  • deed recording fees
  • discount points
  • loan origination fees
  • surveys
  • taxes
  • title insurance
  • title searches

Earnest money is often delivered at the signing of the purchase agreement or sales contract.  However, it can also be included with the buyer’s offer on the home.  Once these funds are deposited, they are normally held in an escrow account up until it’s time to close.  At that point in time, the funds are applied to the buyer’s closing costs and down payment. The process is simple and easy.

Can an EMD Be Refunded if the Purchase Falls through?

If you’re wondering whether these funds can be refunded if something in the contract goes wrong and the sale falls through, this depends on the situation as these funds aren’t always refundable.  For instance, if the buyer doesn’t meet the timeline specified in the contract or decides against purchasing the home because certain contingencies weren’t listed in the sales contract, the seller can keep the funds.  The money will also be forfeited if the buyer has a change of heart and decides not to buy the home. Thus, it is important to understand the whole process and when your money will be forfeited and when it can be refunded.

At Florida State Mortgage, we make the home buying process streamlined without having any unnecessary hassles added to the process.  Why not see how easy and stress-free buying a home can be by contacting Florida State Mortgage Group, Inc. today at (954) 359-3000!

Filed Under: Buy A Home Tagged With: Florida, Fort Lauderdale, Tips To Buy a Home

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Fort Lauderdale's Top-Rated Mortgage Company

Florida State Mortgage Group, Inc. is located on 1512 E Broward Blvd #204A, Fort Lauderdale. From Fort Lauderdale-Hollywood International Airport (FLL) head northwest toward Terminal Dr/Upper Terminal Dr and use the right 2 lanes to turn slightly right onto Terminal Dr/Upper Terminal Dr. Then use the left lane to keep right at the fork and follow signs for Departures and use the left lane to continue toward US-1 N. Next, keep left at the fork, follow signs for US-1 N/Ft Lauderdale and merge onto US-1 N. After that merge onto US-1 N and keep left to stay on US-1 N. Finally, turn right onto E Broward Blvd and Florida State Mortgage Group, Inc. will be on your right.

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Florida State Mortgage Group, Inc.
1512 E Broward Blvd #204A
Fort Lauderdale, FL 33301
Phone: (954) 359-3000
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NMLS# 393326
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Florida State Mortgage Group, Inc, Mortgage Broker, Fort Lauderdale, FL
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Florida State Mortgage Group, Inc. is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.

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