Re: Paying earnest money over 3-4 months - Posted by JohnBoy
Posted by JohnBoy on November 21, 1998 at 21:07:22:
If they don’t have the money up front then chances are they won’t be able to come up with it later especially when they’re taking on a new monthly payment with you.
If they have decent credit they can get a signature loan for up to $5k at the local finance companies. Be sure to verify their income and other monthly obligations to be sure their income could support the additional payments or your asking for trouble.
Also, don’t use the term “earnest money”. Instead use “Non-Refundable Option Consideration”. Earnest money may have to be refunded if they couldn’t get the financing later on. Option money is more of a fee for tying up the property at a pre-set sale price at a future date.