Earnest Money

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Earnest money, also known as good faith deposit, is money put down to show the seller you’re serious about buying. It’s usually 1% – 3% of the sale price, and the money is deposited in a third-party account, known as escrow. The money becomes part of the down payment if the home transaction goes through. If the home purchase doesn’t happen, the seller may or may not be contractually obligated to return this deposit.