By Cody Callaway · Reviewed September 23, 2026
Earnest money is one of the first deadlines after your offer is accepted, and it is important to understand what it is and what it is not.
Earnest money is a deposit that shows the buyer is serious about moving forward under the contract. The amount, deadline, and holder are controlled by the signed contract. It is generally credited toward the buyer’s transaction at closing, subject to the contract terms.
What matters most:
- Know the exact deadline. Do not assume “a few days” means business days or calendar days. Use the contract.
- Know where it is going. The contract and transaction instructions should identify the proper title/escrow holder.
- Keep proof of delivery. Save the receipt, confirmation, or other evidence that the funds were delivered on time.
- Be extremely careful with wires. Real estate wire fraud is real. Never trust changed wiring instructions just because they appear in an email thread. Independently call the title company using a verified phone number before sending funds.
- Do not confuse earnest money with your down payment. They are related to the transaction, but they are not the same thing.
If there is ever a question about whether earnest money is refundable, forfeited, or applied differently, the answer depends on the contract and the circumstances. That is not something to guess about.
My job is to track the deadline with you, make sure you know where the money needs to go, and keep the transaction moving without avoidable surprises.
Your next step
Ask me about unclear instructions before sending funds, then keep the receipt.