8 Steps to Buying Your First Home : Step 5

Step 5 : Earnest Money and Inspections

Once you’re under contract you deliver initial earnest money. This is an agreed upon sum of money that’s deposited on the sellers side that works almost like a security deposit with a landlord. it shows the seller that you’re serious about buying the home. It’s protected by the terms of the contract, and it’s also applied to the purchase at the end.

Next is the home inspection, a period where a home inspector comes to the home for a few hours and look for any and all issues, but mainly the health and safety concerns. They’ll present a report that lists out all the potential issues for you to review with your agent.

Regardless of the type of home you’re buying, new construction or 100 year old home, there’s always issues. The most important thing is the viability of moving forward after those issues are found. An experienced home inspector is work their weight in gold.

Additional Episodes

Episode 1 : Getting Pre-Approved
Episode 2 : Connecting with a Real Estate
Episode 3 : Finding the Right Home
Episode 4 : Paying the Right Price
Episode 5 : Earnest Money
Episode 6 : Attorney Review
Episode 7 : Finalizing Your Loan
Episode 8 : Walk Through + Closing Day

Check out the full series on our Facebook and Youtube channels.


Vesta Preferred Realty is a licensed real estate broker in the state of Illinois with offices located at the address below: 

1001 N Milwaukee Ave Suite 401, Chicago, IL 60642.

RNP Group is the residential real estate sales arm of Vesta Preferred Realty. Equal Opportunity Housing.