Deposit vs Down Payment

Posted by Jeff King on Oct 28, 2011 | 0 comments

Ever have any confusion with Real Estate Terminoloyg?  Well you’re not alone.  You often her of down payment and how that affects the deal and where does the deposit go?  So I’m starting a series of blogs and tweets that are designed to help you.  If you really want to look at Everything you can find a comprehensive list by clicking here.  Other wise stay tuned and follow along.  Feel free to call me if you have questions at 250-751-4902.

Deposit: Money placed in trust by the purchaser when an Offer to Purchase is made. The sum is held by the real estate representative or lawyer/notary until the sale is closed and then it is paid to the vendor.

Down payment: The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage.

If you would rather watcha video of me discussing this with a mortgage professional, click here.

Should you wish to discuss this or other Real Estate needs you may have, email me at jeff@jeffkinghomes.com.