Earnest Money: What It Is and How to Pay It Safely

Congratulations! Your offer was accepted. The next step is your earnest money deposit.

Earnest money is a good-faith deposit that shows the seller you're serious about buying. The amount and due date are written into your purchase agreement, and it's usually due within a few business days of acceptance. The money doesn't go to the seller. A neutral third party holds it until closing, usually the title company or a brokerage trust account, depending on your contract.

At closing, your earnest money is credited toward your down payment and closing costs. If the deal falls apart, what happens to the deposit depends on your contract, including your inspection, financing, and appraisal contingencies. That's why it's important to know your deadlines and talk with us before any contingency date passes.

How to pay safely:

• Get payment instructions only by calling the title company at a phone number you've verified yourself, from their official website or your contract documents. Never use a number from an email or text alone.
• Never wire money based on emailed instructions, even if the email looks like it came from us, your lender, or the title company.
• Keep your receipt and send us a copy.

Read our Wire Fraud Warning before sending any money.

Questions about your earnest money? Call or text James at 907-360-7448.