What is earnest money?
Earnest money is a good faith deposit that a buyer provides the seller of a home when they accept the offer. It helps reassure the seller that the buyer is serious about going through with the purchase. sakchai vongsasiripat/Getty ImagesWhen you make an offer on a home, the seller may want some assurance that you’ll go through with the purchase, barring any issues. That’s where earnest money comes in. It’s a deposit that proves you’re serious about buying the home and provides protection for the seller if you get cold feet for reasons not outlined in your purchase agreement. While earnest money is not always required, it can help your offer stand out, which may be crucial to getting a home in a competitive market. Here’s what you need to know. What is earnest money?Earnest money is a good...