If you’re ready to make an offer on a home and also want to prove to the home seller that you’re serious about your offer, earnest money is a good way to prove your commitment. When a buyer and seller enter into a contract, the seller takes the home off the market while the transaction moves through the entire process to closing. Earnest deposits are typically 1%-2% of the purchase price, but if your finances are tight, you can offer a lower amount. The higher the deposit, the more serious you will look to the seller. Your deposit is typically due within 48 hours of going under contract. This deposit is paid to the title company and is credited back to you at closing. If the deal falls through due to a failed home inspection or any other contingencies listed in the contract, the buyer typically gets their earnest money back.