When your offer on a home is accepted, you'll usually put down "earnest money," a good-faith deposit that shows the seller you're serious.
It is not an extra fee. If the sale goes through, it normally counts toward your purchase. It's usually held by a neutral party, not handed to the seller.
Here's the part many buyers don't know: your contract has deadlines, like for your inspection, your attorney review and your mortgage. If you need to back out, doing it the right way and on time is what usually protects your deposit. Missing a deadline can put it at risk.
When you sign a contract, ask your agent and attorney to walk you through every deadline. Put each one in your phone calendar the same day.
General education only, not legal, tax or lending advice. Program rules vary; ask your lender, attorney or program office about your situation.
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