How exactly will money change hands ?

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Ledalukya

LoanSafe Member
Dec 25, 2019
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Hi there!
This is my first post so apologies in advance if question belongs somewhere else.

When buying a house, does the buyer pay the downpayment directly to the seller or does the money go to lending bank which in turn pays the seller ?

How does one know the money is going to the right party and not to an imposter ?
 

Jzone

LoanSafe Member
Jun 20, 2017
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70
Hi there!
This is my first post so apologies in advance if question belongs somewhere else.

When buying a house, does the buyer pay the downpayment directly to the seller or does the money go to lending bank which in turn pays the seller ?

How does one know the money is going to the right party and not to an imposter ?
Just Google "home closing process". Laws vary by state, but there are steps that need to be taken. If you are using a real estate agent, they will handle most of it. You can buy/sell on your own but I wouldnt recommend it if this is your first home purchase.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
Escrow or a closing attorney (depending on the state) handles the disbursement of funds at the close of escrow to protect all parties involved in a purchase transaction. Your down payment goes into escrow along with the funds from the lender. Once the funds are in, they are disbursed to the parties involved in the transaction and then the remainder goes to the seller.