Earnest money deposit
Once your offer has been accepted, be prepared to make an earnest money deposit. This is usually a percentage of the purchase price that indicates you are serious about buying and indicates your good faith. A deposit is generally a cash offer that is applied to the purchase price when you complete the transaction, but could be forfeited to the seller if you fail to satisfy the purchase. Your broker can help determine the deposit amount you should be prepared to pay, based on your target home price.
Many first-time buyers are taken by surprise when it comes to the deposit, especially when they need to make a fast offer. You should have money readily available in your checking account so you can wire funds to escrow the day your offer is accepted. This could be very important, and the deciding factor in your offer being accepted or not. Be sure to focus on your deposit when developing your negotiating strategy.