M
Monique_H
Guest
What is the name of your state? Michigan
My husband and I are attempting to have a new home built. We have signed a purchase agreement with a builder. His required deposit for our home is $10,000. We have given him $500 so far, we have the blueprints and the permits are ready. We are working with a mortgage company and the woman at the MC is telling us that she does not understand why we are giving this builder $10,000, she thinks that $1,000 should be a sufficient deposit. The woman at the MC says that since it is non-refundable we could lose this money if something were to happen, she said what if our children got sick and we needed the money for med. bills, or someone died, etc. We are not getting a construction loan, so we felt that giving him this money was a smart idea for both parties. We were working with another lender and she felt that the $10,000 was fair. I am not sure if there are any legal guidelines for deposits. We do not know anyone who has built a home recently, so we are trying to figure this out. Thank you for your help!!
My husband and I are attempting to have a new home built. We have signed a purchase agreement with a builder. His required deposit for our home is $10,000. We have given him $500 so far, we have the blueprints and the permits are ready. We are working with a mortgage company and the woman at the MC is telling us that she does not understand why we are giving this builder $10,000, she thinks that $1,000 should be a sufficient deposit. The woman at the MC says that since it is non-refundable we could lose this money if something were to happen, she said what if our children got sick and we needed the money for med. bills, or someone died, etc. We are not getting a construction loan, so we felt that giving him this money was a smart idea for both parties. We were working with another lender and she felt that the $10,000 was fair. I am not sure if there are any legal guidelines for deposits. We do not know anyone who has built a home recently, so we are trying to figure this out. Thank you for your help!!