Buying a home is not as cut and dry as some people imagine. That is why it is very important to work with a licensed agent that understands the laws and procedures and can explain them to you. Otherwise you may end up losing the time and money invested in the hunt, and not to mention the home you had set your sights on. One important part of the process is earnest money. Earnest money is a check that is submitted along with your offer to purchase to show the sellers that you are a serious buyer. The money is usually put toward the closing costs if the contract is fulfilled and accepted. The seller does not get the money directly. It is typically held by an impartial party, such as a title company, in case the contract is dropped by the seller so that it may be returned. Your realtor will advise you on the proper amount of the earnest money if it not specified by the seller.

Blog inspired by article written by Carl Leatherman featured in The Valley Morning Star and can be seen here: http://homes.valleymorningstar.com/news/earnest-18-money-many.html