What is an Earnest Money Deposit, and Why Does It Matter?

When you're buying a home, you'll likely hear the term Earnest Money Deposit (EMD). Think of it as a "good faith" payment to show the seller you're serious about the purchase.

How It Works:

You and the seller agree on an amount (usually 1–3% of the purchase price).

The funds are deposited into an escrow account—this is where we, Lakeside Title & Escrow, step in!

The deposit is applied toward your down payment or closing costs when the sale is finalized.

What Does Escrow Mean?

Escrow is a neutral, secure account where funds are held by a third party (that’s us!) until all conditions of the real estate contract are met. At Lakeside Title & Escrow, we act as a trusted intermediary, ensuring the money is safe and released only when both parties fulfill their obligations.

Why It Matters:

• It gives sellers confidence in your offer.

• It protects your money until the deal is ready to close.

• It ensures transparency and fairness throughout the process.

• At Lakeside Title & Escrow, safeguarding your earnest money is just one of the many ways we provide peace of mind during your homebuying journey. You can trust us to keep the process smooth, secure, and stress-free!

Have questions about escrow or earnest money deposits? We’re here to help!

540-412-1057