What is an earnest money deposit?

Earnest money is the deposit you make on the property when you submit your offer. Earnest money proves to the seller that you are serious about wanting to buy. When your offer is accepted, the deposit will then be made, usually to the Title Company that will be closing the transaction. Your earnest money will be applied to the down payment and/or closing costs. The amount of your earnest money varies, usually based on the value of the property being purchased.