Earnest Money
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Earnest money is a good-faith deposit a buyer makes when signing a purchase contract, held in escrow and applied toward closing.
What Earnest Money means
It signals serious intent to the seller. In Florida, earnest money typically runs 1–3% of the purchase price and is credited to the buyer at closing. But it can be forfeited if the buyer breaches the contract.
Florida example
A Florida buyer offering on a $400,000 home puts down $8,000 in earnest money. If they cancel within an inspection or financing contingency, they get it back. If they simply walk away, the seller may keep it.
A good-faith deposit
Earnest money is a deposit you make when a seller accepts your offer. It shows you are serious. In Florida it usually runs 1% to 3% of the price and goes into an escrow account.
It is held by a neutral party, not paid to the seller directly.
It comes back to you
Earnest money is not lost. At closing it applies toward your down payment or closing costs. If the deal falls through under a valid contingency, you usually get it back.
We help you set a deposit that wins the home without overexposing your cash. Reach out and we will prep your offer strategy.