Earnest Money: What You Need To Know And How Much Is Enough?

When purchasing a home, earnest money is a key factor in determining if you’ll get the home before the deal closes.

Earnest money is different from a down payment and often a lot less. It’s basically a good-faith gesture and says to the seller that you are serious about purchasing the home.

There are a number of factors that go into ensuring your earnest money satisfies the seller and that you get it back if things don’t work out. In this article, you’ll learn what earnest money is, how much you should put up and how to ensure you get it back if the deal doesn’t work out.