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 , earnest money typically is approximately 1-3 % of the sale price .
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 . Idaho has a homeowner ’ s exemption for owner-occupied homes , including manufactured homes which are primary dwellings . This exempts $ 94,745 for 2016 or 50 % of the value of your home , whichever is less , and up to one acre of land . Taxes are computed on the non-exempt value . For more information and an application , contact your county assessor .
FOR MORE INFORMATION , VISIT : tax . idaho . gov
AN ORIGINAL PUBLICATION | HUGHES REAL ESTATE GROUP OF SILVERCREEK REALTY GROUP | 9