Blog > What’s the Difference Between Earnest Money and Down Payment?
Earnest money is a good-faith deposit made by the buyer when they submit an offer, showing commitment to the purchase. It’s typically held in escrow and later applied toward the down payment or closing costs. The down payment, on the other hand, is the larger portion of the home’s purchase price that the buyer contributes at closing. Understanding both helps sellers gauge the seriousness and financial readiness of a potential buyer.
GET MORE INFORMATION
