When you make an offer on a home, you will hear about earnest money. Here is what it means in plain language.
What it is
Earnest money is a deposit that shows the seller you are serious. It is not an extra cost. It goes toward your down payment or closing costs when you close.
Where it goes
In Texas, the deposit is typically held by a neutral title company, not by the seller or the agent.
How much?
There is no single number. It is negotiated in the offer and can vary with the price and the market. I will help you choose an amount that is competitive without putting more at risk than you need to.
When can you get it back?
Your contract protects you in certain situations, such as during the option period, if the inspection reveals problems, if you cannot get financing as outlined, or if the appraisal comes in low, depending on the terms. If you back out outside those protections, the seller may be entitled to keep it.
How to protect yourself
Understand every deadline in your contract.
Deliver the deposit on time.
Ask questions before you sign.
Reading a contract can feel overwhelming. I will explain each part and keep an eye on your dates. Ready to make an offer? Let us talk.
