Is $4000 acceptable for Earnest money on a 115K loan?

[Tamara Batsell]

Reading over Contract for buying a home and amount of earnest money is $4000. Is this a fair amount for a loan of 115K? That is over 3% of loan amount. I'm in Dallas, TX

Thanks for any feedback.

[Daria B.]

Originally posted by @Tamara Batsell:

Reading over Contract for buying a home and amount of earnest money is $4000. Is this a fair amount for a loan of 115K? That is over 3% of loan amount. I'm in Dallas, TX

Thanks for any feedback.

For me yes that is a lot of money for a $115k note. I only put down 1% of the offer. Others do more because they say it shows the seller you are serious. If you have a well protected contract and things don't go the way you want then you should get your EMD back. I still say it's a lot and would rather have that money to go towards repairs or rehab or just stay in my pocket.