Getting ready to shop for a home? An important part of the home buying process is making an earnest money deposit, or “EMD.”
Also known as a “good faith deposit,” earnest money is a lump sum of cash that you plunk down when you enter into a purchase agreement with a home seller. The deposit serves as a sign of commitment and a gesture of goodwill, since you could be required to forfeit your deposit if you try to back out of the deal without a valid reason.
