First time homebuyer....?

Question

I'm applying for an FHA loan and also plan to use DPA program. When getting to the contract on the home is it always necessary to put down an earnest deposit? Is this optional or negotiable?

Answer 1

I never write out an earnest money check.  I tell the seller that i will deposit $1,000 as soon as we have an agreement.  It's in the contract but i also add that i haven't written the check and won't write it until we have a deal.

Answer 2

While technically this can be negotiable, it's usually required by the seller to make sure you have "skin in the game" and are acting in good faith.  If you get all the money you're looking for in DPA and closing costs, it's possible to get that back at closing.