Buying a home comes with a lot of new terms—and one that surprises many buyers is earnest money. If you’re wondering whether it’s an extra fee, a down payment, or money you might lose, you’re not alone. Here’s what earnest money is, how it works, and what home buyers in the Philadelphia area should know before making an offer. What Is Earnest Money? Earnest money is a good-faith deposit a buyer puts down after an offer on a home is accepted. Think of it as a signal to the sel