Portion of the down payment delivered to the seller or an escrow agent as evidence of good faith so as to legally bind the purchase. When a purchase contract is offered and accepted by the seller, the buyer must typically provide an earnest money deposit. This deposit will be credited to the buyer's account, at the time of closing, as a portion of the down payment. [A typical earnest money requirement with many residential purchases is at least $1,000 at the time of signing and up to 5% of the entire purchase price within a few days after contract review.] For more information, see the Down Payment Requirements article in the "Homebuyer Guide" section.
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