At closing, who is credited with the earnest money?

At closing, the earnest money is credited to the buyer because it demonstrates the buyer's intention to purchase the property and shows their commitment to the transaction. This deposit is typically held in an escrow account until the closing process, at which point it is applied towards the buyer's down payment or closing costs. This practice protects both the seller, who has assurance that the buyer is serious, and the buyer, who can see that their initial investment is acknowledged and counted towards their financial obligations at closing.

The seller does not receive credit for the earnest money directly; instead, it becomes part of the transaction funds allocated to the buyer's overall payment. Brokers and lenders are also not credited with the earnest money, as their roles do not involve receiving and crediting deposits from buyers in this manner. Instead, brokers may facilitate the handling of these funds, while lenders focus on providing financing for the purchase.