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Earnest Money
A good-faith deposit you put down to show the seller you are serious about buying the home.
What you should know
Earnest money is a deposit delivered to the title company at the start of the transaction. It signals to the seller that you intend to follow through on the contract. The amount is negotiated in the contract and is held in escrow until closing, when it's typically applied toward your down payment or closing costs. If the deal falls through for a reason covered in the contract (failed inspection during option period, financing denied, etc.), you generally get it back. If you back out without a valid reason, the seller may keep it.