Step 9 : Wire Earnest Money Deposit

Congratulations! The seller has accepted your offer and we now have an executed contract. It's time to wire the earnest money deposit (EMD). While you can drop off a cashier’s check at the escrow company office, most people prefer to wire the funds. The earnest money needs to be transferred within one business day of contract execution. Make sure you have the necessary amount available in your checking or savings account and not in stocks or CDs.

What is Earnest Money?

In Silicon Valley, the earnest money deposit is usually 3% of the purchase price. This amount will be part of your down payment. Earnest money shows the seller that you are a serious buyer. Once the EMD is deposited in escrow, the seller will stop advertising their property and the listing status will change to Pending or Active Contingent (if there are contingencies).

Next Steps

Contact Information: We will share your name, phone number, and email with the escrow officer.

Wire Instructions: The escrow officer will email you the wire instructions securely.

Bank Cut-off Time: The cut-off time for most banks is 3 pm on business days, and banks are closed on weekends. You can initiate the wire in person at the bank or online through your bank’s website. Check if your bank allows online wire transfers.

Important Steps to Follow:

Call to Confirm Instructions: Once you receive the wire instructions, call the escrow officer to confirm them verbally. This helps prevent wire fraud.

Initiate the Wire: Proceed with the wire transfer. If you do this after 3 pm, the wire will arrive the next business day.

Confirm Receipt: Call the escrow officer again to confirm they received the wire.

Send Receipt: Take a screenshot or picture of the bank receipt and text it to me.

Reminder

Your earnest money amount will be deducted from your final down payment and must be transferred within one business day after contract execution.

If you have any questions, please reach out!