Getting ready to shop for a home? An important part of the home buying process is making an earnest money deposit, or “EMD.” Also known as a “good faith deposit,” earnest money is a lump ...

For example, if you buy a $400,000 home, you may pay $4,000 to $40,000 as an earnest money deposit to show the seller you intend to buy the property. Although uncommon, you may buy a home without ...

You'll keep an earnest money deposit toward your down payment in an escrow account until you close. You'll likely also have an escrow account when you own the home to pay your taxes and insurance.