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Mortgage Answers / Purchase Deposit

What Is Earnest Money When Buying a House?

The Short Answer

Earnest money is a deposit connected with your purchase offer. Its amount, handling and refund conditions depend on the contract and applicable rules. Confirm how it will be credited and when it could be at risk.

Understand where the deposit goes and what the contract says about getting it back.

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EARNEST MONEY$

It is tied to your purchase contract.

A guaranteed refund
Terms and deadlines matter.

Start with your priority

What is happening with your deposit?

Explore a goal below. No contact information needed.

I have not paid it

Check the contract before paying. Confirm the amount, due date, holder and payment instructions.

  1. Review amount and deadlines

    Review the deposit amount, due date and conditions in the actual contract with your real estate professional or attorney.

  2. Confirm who holds it

    Confirm who should hold the deposit. Do not assume payment goes directly to the seller.

  3. Verify payment instructions independently

    Verify instructions independently through a known contact before sending money. Do not rely only on an unexpected message.

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I already paid it

Keep proof of the deposit and ask how it will appear at closing. Do not count the same money twice.

  1. Keep proof of payment

    Keep the payment receipt and other records requested by the lender or closing agent.

  2. Confirm how it is shown on closing documents

    Ask how the deposit will be credited on your closing documents. Confirm the amount shown.

  3. Avoid counting it twice

    When planning the money still due, check that the deposit is accounted for rather than added again.

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I may cancel

A cancellation does not automatically mean you get the deposit back. The contract and applicable rules matter.

  1. Review contract contingencies and dates

    Review the contract conditions and deadlines that could affect the deposit. Do not assume all reasons for canceling have the same result.

  2. Ask your real estate professional or attorney

    Ask your real estate professional or attorney about your specific contract and local rules. This page is not legal advice.

  3. Do not assume a refund is automatic

    Get clear instructions before taking action. A refund is not automatic and this page cannot decide your rights.

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More than one path

Keep these two things in view.

Tap a card to see what matters.

The practical resultPlanIt is tied to your purchase contract.Details

Earnest money is a deposit connected with your purchase offer. Its amount, handling and refund conditions depend on the contract and applicable rules. Confirm how it will be credited and when it could be at risk.

The important limitRuleTerms and deadlines matter.Details

The loan program, lender, property and complete application can affect what happens next. This is educational guidance, not a loan approval or promise.

What does this connect to?

Your down payment and closing fees are different parts of the purchase. Ask for a written estimate of all the money still needed.

What could affect the next step?

Closing dates and rate-lock dates are connected. Ask when the lock expires and what extension terms could apply if timing changes.

What should I check next?

Read the final loan form before signing. Compare the payment, costs and money due with your latest Loan Estimate, and ask about differences.

A few good questions

Is earnest money always refundable?

No. The contract, deadlines and applicable rules determine when it may be refunded or at risk.

Does the deposit disappear from my closing figures?

Ask how it is credited and check the actual documents. Keep proof and avoid counting the money twice.

Can this page tell me whether I can cancel and get a refund?

No. Ask your real estate professional or attorney to review the specific contract and local rules.

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About WWBT & Disclosures
Why Wait Buy Today, WWBT provides educational tools and interactive experiences designed to help consumers explore homebuying, financing, and homeownership options. Information provided through WWBT is for educational purposes and is not a commitment to lend or provide real estate services. Mortgage, real estate, builder, and other professional services are provided by the professional or company identified on the applicable experience. Participating professionals are responsible for their own licensing, disclosures, advertising, products, rates, terms, eligibility requirements, and services.