What is the difference between a down payment and earnest money when purchasing a home?

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2026-03-07 05:35

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A down payment is a larger sum of money paid by the buyer towards the purchase of a home, typically around 20 of the home's price. Earnest money is a smaller deposit made by the buyer to show their serious intent to purchase the home, usually around 1-2 of the home's price.

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