Earnest money is the sum of money the home buyer pledges with the:
A) lender to guarantee the purchase.
B) seller to indicate the intent to purchase.
C) realtor for finding the desired home within a preset budget.
D) lender to originate the loan.
E) financial institution to prequalify for a mortgage loan.

Question

Quizplus · Accepted Answer

Earnest money is a sum of money given by the buyer to the seller to indicate their intent to purchase the home. This money is held in an escrow account and will be put towards the down payment or closing costs at the time of closing.

Earnest Money Is the Sum of Money the Home Buyer