The home-buying process can be confusing, particularly if you are a first-time buyer. Two important buyer payments are often confused; earnest money and the down payment.
Before you buy or sell a home, being clear on these terms and what they could mean to you during the real estate transaction is important.
Earnest money payments are a deposit, whereas the down payment contributes part of the money paid to buy the home. Both of these payments are significant costs for the buyer to find and pay at the right time. But how much money will a buyer need to cover these costs?
We compare earnest money with down payments to help make the process more straightforward.