Earnest money
A good-faith deposit made when your offer is accepted, demonstrating serious purchase intent. Typically 1–3% of the purchase price. Credited toward your down payment or closing costs at closing. May be forfeited if you back out of the contract outside the contingency window.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
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- Closing disclosure (CD) — The final itemized disclosure of your loan terms, rate, monthly payment, and all closing costs. Federal law re…
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Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.