Is earnest money basically 'gone' once I send it?

Is earnest money gone once I send it?

You want to know if earnest money disappears once you send it to the seller or their agent. Earnest money doesn't vanish—it sits in an escrow account and gets returned to you or applied toward your purchase based on what happens with your home purchase.

Earnest money works as a good faith deposit that shows the seller you're serious about buying their home. The money goes into a neutral escrow account, typically held by the title company or real estate brokerage. The escrow agent releases the funds according to your purchase contract terms.

Check your purchase agreement for the specific conditions that determine where your earnest money goes. Common scenarios include: if the deal closes successfully, earnest money typically gets applied toward your down payment or closing costs. If you back out for reasons covered in your contract contingencies (like inspection or financing issues), you get the money back. If you cancel without a valid contract reason, the seller may keep the earnest money.

Share your purchase contract with your agent and they can walk you through the specific earnest money terms for your situation.