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what is earnest money and why do I have to pay for it basically its an investment into the home as a buyer and its a deposit of good faith with the title company that youre going to be buying the home typically in Texas its about one to two percent of the purchase price and it does get applied towards your down payment and closing costs there are a myriad of ways that you can get out of the contract and still save your earnest money which we protect you of as your buyer representative but there are a couple instances where you could actually lose that money so