WHAT IS EARNEST MONEY?
Earnest money shows intent to follow through with the buying process. It is deposited by the buyer at the time a contract is presented, to show you’ re“ earnest” about buying the seller’ s home. Earnest money checks range from a few hundred dollars to several thousand.
For the average home in Idaho, earnest money typically is approximately 1 % of the sale price, but the amount can vary depending on the agreement.
The earnest money is held in a trust account by either the listing or selling broker, and is credited to you at closing for your down payment or closing costs. The down payment, on the other hand, is the cash the buyer pays at closing to make up the difference between the sales price and the loan amount. Down payments range from zero to 20 % or more depending on the type of loan. Usually, the lower the down payment, the higher the monthly payment for the loan.
HOW CAN I FIND OUT ABOUT THE PROPERTY TAX LIABILITY?
The total amount of the previous year’ s property taxes is usually included in the listing information. Tax rates can change from year to year, city to city, even neighborhood to neighborhood. Taxes are not assessed until November of the current tax year. For the most current tax information, contact the County Assessors office. The first half of the taxes are due in December and the second half are due in June the following year. Most lenders set up an escrow account where they will estimate( usually based on the most recent assessment) and then pro-rate over a 12 month period. You will pay 1 / 12 of your taxes every month, then the lender will pay the taxes when they are due. For more information and an application, contact your county assessor.
FOR MORE INFORMATION, VISIT: tax. idaho. gov
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