Hello! This is Joe Harris with Morgan Financial and here is your “Joe Knows Mortgages MINUTE”. This week, we answer the question: What is an Earnest money deposit?

An earnest money deposit is also known as good faith money, or an escrow deposit.  This is the amount that you put down as a deposit when a real estate offer is accepted.  This money can typically be used towards your transaction at closing.  If you do not close on your transaction, you may be entitled to a refund of your earnest money, as long as you meet the stipulations of the contract.  In some instances, the earnest money deposit may be forfeited if the timeframes and stipulations of withdrawal from the contract are not met.

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