Earnest money explained
What it is, where it goes, and when you might (or might not) get it back.
Earnest money is a deposit — typically 1–3% of the purchase price — that signals to the seller you're serious. It's held in an escrow account, not handed directly to the seller, and it's later applied toward your down payment or closing costs at closing. Whether you get it back if the deal falls through depends entirely on your contingencies, which is exactly why the next two steps matter so much.
This step is general educational guidance, not legal, financial, or real estate advice — your contract terms, deadlines, and local requirements always take precedence, so confirm specifics with your licensed professionals. Read our full disclaimer.