Earnest Money Deposit (EMD)

What happens to earnest money at closing? The lawyers order it from the escrow agent.

They then put the money towards the closing costs of the down payment.

Does earnest money go towards the down payment? It can, but you can also use it to pay for closing costs.

EMD are good faith funds held in escrow that shows the buyer is serious about the contract for a house.

These funds should be held by a third party, so neither party has access.

The seller has a claim if the buyer walks away without cause, but contingencies in the contract also protect purchasers.

At closing, the money is put toward the closing costs and/or down payment.