Earnest money is the amount of good faith that you are showing the seller that you are interested in the home. This is usually anywhere from $500 to 10% of the purchase depending on several factors. Your Realtor will help you analyze this. This check willget cashed a few days after the contract is accepted and signed. If the contract is not accepted it will not get cashed. When cashed the money goes into an escrow account. This is a 3rd party that holds the money until closing. The rules are different for new construction. However, if for some reason the home does not close, the Buyer and the Seller have to agree who gets the earnest money. The Buyer almost always is refunded the earnest money.