Earnest Money and Down Payment

Earnest Money

Earnest money is a deposit that represents a buyer’s good faith to buy a home.earnest-money-deposit The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing.

Down Payment

The down payment represents a percentage of the full purchase price.   The purchaser makes financing arrangements to cover the remaining amount owed to the seller.  The lender will tell you how much of a down payment is required depending on the loan type.