Most contracts require an earnest money deposit from the buyer. This means you’ll need to put a negotiated amount of money into an escrow account within a few days after both the buyer and the seller sign the contract.
Don’t worry, though – this deposit is actually a good thing! It shows the seller that you are serious about buying their home, and it adds an extra level of financial guarantee that you’ll follow through on the contract. Plus, it’s not an expense – the money is held by a neutral third party (usually a title company) and then credited toward your down payment at closing.