Earnest money is a deposit you’ll pay at the time you enter into a contract to show the seller you have both the intention and ability to perform on the offer you’ve written. Your contract will specify the amount (1-3% of the price is typical). At closing, your earnest money will be credited toward your down payment. If you cancel the transaction for a reason permitted by your contract, your earnest money will be refunded to you. If you fail to close for a reason outside of your contractual rights (say, a late case of cold feet), the seller gets your earnest money as liquidated damages for the harm you caused. Talk to your Realtor for help understanding the contingencies and timelines that protect your earnest money.