2026-09-14 · HOME FINANCING EDUCATION

Earnest money: a conversation with your loan officer

Earnest money is a deposit governed by the purchase agreement and the transaction’s escrow instructions.

A conversation with your loan officer

Bring three things to the conversation: your goal, purchase agreement and proof of deposit, and a list of uncertainties. Explain why earnest money matters to your decision. Ask John to distinguish general program information from an assessment of your documents and property. End the conversation with a short action list, a responsible person for each item, and a realistic date to revisit the scenario.

Put the tradeoff in context

Refund rights depend on contract terms and timely use of contingencies. Ask your real estate professional about deadlines and refund conditions. Your primary residence is both a place to live and a continuing financial responsibility. A financing decision should fit the time you expect to own the home, the money left after closing, and the other priorities in your household. An estimate is useful only when you understand what it includes.

Turn the idea into an action

Gather purchase agreement and proof of deposit. Write down the questions that remain and ask which answers depend on a specific property or loan program. Keep a dated copy of the information you use. If a number changes, revisit the comparison rather than continuing with an outdated budget.

• Identify the decision: Ask your real estate professional about deadlines and refund conditions.
• Document the uncertainty: Refund rights depend on contract terms and timely use of contingencies.
• Prepare your file: purchase agreement and proof of deposit.

Continue your research

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Prepared for this educational archive on November 12, 2026. The archive date is an editorial organization date, not a claim of past publication. Hypothetical examples are not loan offers, approval standards, legal advice, or tax advice. Current requirements and actual costs need individual review.