Earnest Money is applied as a credit to you at Settlement.
The settlement sheet is basically a balance sheet. The money you owe is on the top of your side (purchase price, closing costs, your portion of property taxes, etc.)
All the money paid on your behalf (loan proceeds, earnest money, the seller's portion of property taxes, etc.) is on the bottom of your side and is a credit to you.
The difference between what you owe and what you have paid (including the Earnest Money) is what you have to bring in to closing (or what is refunded to you if you have brought in too much).
In other words, the earnest money is credited on your behalf, but not directly for any specific cost.
Whatever your total cost to close would have been with no Earnest Money, it will be reduced by the amount of the Earnest Money Deposit you have paid, and you will bring in that much less at closing.
A good lender and title company should have these figures for you and your broker a day or two before settlement. You and your broker should review the Settlement Statements for accuracy and have any corrections made prior to Settlement.
A good Exclusive Buyer's Agent (EBA) can help you select lenders and title companies who perform in a timely manner. Having a reliable lender and a responsive title company will add to the smoothness of your transaction and can eliminate a lot of stress and frustration.
If you are buying a home in Salt Lake City or the Surrounding Area, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an EBA!
If you have excellent credit and will be buying a $300,000-$800,000 home in the next 1-3 months and would like an agent who will work exclusively for you, call us at (801) 969-8989 or contact us via the link on this page.
Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
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