Earnest money is a deposit that represents a buyer’s good faith to buy a home. The money gives the buyer extra time to get financing and conduct the title search, property appraisal, and inspections before closing.
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.
Closing costs are the fees you pay when obtaining your loan. Closing costs are typically about 3% of your loan amount and are usually paid at closing.