What is Earnest Money?

Earnest money is a crucial part of the home buying process. It acts like a layaway, allowing you to show the seller that you're serious about purchasing the home by putting down a deposit. This deposit is your "skin in the game," demonstrating your commitment. However, if you walk away from the deal without a valid reason, the seller may keep the earnest money. It's a way of assuring the seller that you're committed to following through.

Key Takeaways:

• Earnest Money: A deposit showing your commitment to purchasing the home.
• Risk: The seller may keep the earnest money if you back out without a valid reason.
• Purpose: Demonstrate your seriousness to the seller.

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