Is this $20k a deposit or a down payment

Is this $20k a deposit or a down payment


hey It’s Lawrence Mak here with your Mak
minute. Today talking about the difference between a deposit and a down
payment. A deposit is used whenever you have an offer for a property, typically
around two to five percent and the main purpose of that is so that a buyer
doesn’t really walk away from the contract, it has enough to hurt them so
for instance if the property was about a million dollars two to five percent
would be about twenty to fifty thousand dollars and then hopefully it will give
the buyer pause to just break the contract. A down payment on the other
hand is for financially to get a mortgage and typically it’s about twenty
percent down at a $1,000,000 and the bank will give you the mortgage for the
remaining 80%. It could be lower than twenty percent it depends on the
price point the home and the way you qualify. If you have any questions just
call me anytime for one six two seven six four eight nine five. Remember
knowledge is power talk to you soon

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