Good question! Simply put, earnest money is your deposit on a home. (See: Realtor.com The Earnest Money Deposit) When you make an offer on a home, the seller will often require earnest money to ensure you are a committed borrower. This can range from $1 – 1% of the purchase price of the home. Often, you can get this money back at closing, too (though that’s subject to negotiation between you and your lender!).
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