In nearly every home purchase, buyers are required to provide a deposit meant to signal their intent, or good faith, to buy a home. What is earnest money? · If the buyer proceeds with the home purchase, the earnest money is put towards the down payment and closing costs. · If the seller. Earnest money, or good faith money, is an upfront deposit that a buyer applies to the purchase of a home when delivering an initial “offer to purchase”.

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Earnest money how does it work