What is earnest money?
When submitting an offer to buy a home, you will also need to submit an earnest money deposit. An earnest money deposit is provided by the buyer to symbolize his or her commitment to buying the property. The deposit is typically held in escrow - an account consisting of all assets still under contention - until the closing, and is applied to your closing costs at that time.
Earnest money shows you are serious about purchasing the home. If you fail to meet the terms of the purchase agreement, you may lose the deposit.
An earnest money deposit is provided by the buyer to symbolize his or her commitment to buying the property.
How much money do you need to provide for earnest money? This amount is usually tied to the asking price of the house. An experienced REALTOR® can help guide you through this critical part of the home buying process and help you understand the role earnest money plays in buying a home.
EmailGet advice
Your no-nonsense real estate guideGet help on your real estate journey with a monthly eNewsletter about buying, selling and maintaining the place you call home.
View sample.
