What is an Earnest Money Deposit & how much do I need?
Earnest Money is a deposit that a seller requires when submitting an offer to purchase their home. It is simply a sum of money that is deposited into a trust account which is held until the day of closing (in most case by the Title Company) and credited back to you at the settlement table (ie: closing). The amount can range from 1-3% of the list price, but 1% is very typical. So on a $200,000 home, the earnest money deposit would be $2,000.
