The downpayment is equity offered with a sales contract to secure a deal. In some cases it may be earnest money, but in larger deals such as real estate, a separate earnest money payment secures the deal in the approval stages while the downpayment is paid later, if not at the close.
Related Fool Articles
Recent Mentions on Fool.com
- 4 Obstacles That Keep Millennials From Buying Their First Homes
- Top 7 Reasons You Might Love Renting
- Is Filing Your Real Estate Business As An LLC Your Best Option?
- 5 Ways to Get the Funds You Need to Get a Mortgage
- Are You Really Approved for That Home Loan?
- BofI Holding Inc: Continually the Best in Class - With Good Reason