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Updated almost 3 years ago on . Most recent reply
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Hard lender wants "good faith deposit" after EM paid... red flag?
So I am buying a property through a wholesaler, I already put down 7k of earnest money on the property, a hard money lender who I am working with (and got from the bigger pockets lists) asked for a "Good Faith Deposit" of $1500.
The wholesaler, and other hard money lenders are telling me they have never heard of a lender doing that and that all money should flow through title, nothing should go to the lender directly at all.
Is the hard money lender wanting a "good faith deposit" after EM paid a red flag?
Most Popular Reply
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I would not give a hard money lender a dime until the deal closes. Appraisal might cost $400, credit check maybe $40. That doesn’t add up to $1500…