What is What Is Earnest Money Deposit?
Earnest money is a good-faith deposit — typically 1% to 3% of the purchase price — a buyer puts into escrow when signing a home purchase contract, credited toward closing costs at settlement.
Practical Example
When a U.S. consumer researches earnest money deposit, understanding the mechanics up front helps them compare providers, avoid hidden fees and choose the option that best fits their budget and long-term goals.
Why It Matters
Getting earnest money deposit right can save households hundreds to thousands of dollars each year and prevents disputes that end up in state regulator complaints or court.
Frequently Asked Questions
Because it affects the price you pay, the protections you keep and the options you have — details that shift with each new regulatory cycle.