Most buyers will admit that one of the biggest concerns when buying a home is when to have the money for the down payment. At what point in the process are you to have the full amount? Many would be surprised to know that the entire down payment does not have to be made when an offer is made. However, you may need to include an earnest money deposit with your offer. And you will need to provide the remainder of the down payment at closing.
What is earnest money as opposed to a down payment? The biggest difference is the earnest money deposit is relevant to the home seller and the down payment is relevant to your lender. The earnest money deposit tells the seller you are committed and helps fund your down payment while the down payment is the amount your lender requires you to put towards the purchase of the property.
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**article provided by realtor.com.