What is Earnest Money When Buying a House?

When a buyer agrees to purchase a property from a seller, the buyer usually pays earnest money as a deposit on the home. The earnest money amount varies based on the type of deal being done, and the price of the home. The earnest money is also refundable based on certain contingencies in most cases. Those contingencies may involve a home inspection, an appraisal, the buyer’s loan, home owners insurance, a survey, or many other items. In most cases the earnest money tends to be about 1 percent of the purchase price of the home. The use of earnest money

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