What is earnest money, when it comes to mortgages?

Earnest money is a deposit on a new home that proves your desire to purchase the home. Many times, earnest money is called ‘good faith deposits’ as it shows you wanting to buy the home is real.

Earnest money is only refunded after the agreed upon date if the purchaser is not elected to buy the home. If the purchaser is, then the earnest money is usually put forward into the down payment.