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  Earnest Money Deposit

A deposit made by the potential home buyer to show that he or she is serious about buying the house.

The earnest money deposit is a "good-faith" payment you submit with your offer on a home to show the seller you are serious about proceeding.

The earnest money is deposited in an escrow account and will be applied to your closing costs.

Sometimes, your lender will want you to bring a receipt for the earnest money deposit along with your sales contract to the initial loan application meeting.

 

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