03/11/2026
đ KNOW THE TERMS: Earnest Money Deposit
The earnest money deposit, also known as a âgood faith depositâ is the money you put down when making an offer to show the seller you are serious about purchasing their home. The deposit is typically 1-3% of the purchase price. This money is placed in an escrow account for protection and:
âď¸Is applied toward your down payment at closing
âď¸Returned if the seller backs out of the deal
âď¸Returned if the contingencies are not met