What Is an Escrow Deposit When I Buy a Home in Pensacola?

An escrow deposit, also called earnest money, is money you put down to assure the seller you're serious about buying the home. Here it's typically about 1% of the purchase price, and it's held by the closing agent, which is the title company or the attorney handling your closing. Whether you can get it back depends on your contract.

Vivian Corwin is a bilingual Realtor and Military Relocation Professional with IXL Real Estate Florida in Pensacola, FL, helping military and relocating families buy and sell homes across Pensacola, Pace, Milton, Gulf Breeze, and Navarre.

Your contract sets both the amount and the deadline, so be ready to make the deposit within that window. Under most contracts, it's credited toward what you owe at closing once the purchase moves forward as agreed.

It depends on how the contract is written and what happens after that. If something comes up with the inspection, the appraisal or another issue within the dates of your contract, you should be able to get it back. That's why the dates matter so much.

My posts on the home inspection and the appraisal cover the two steps where questions most often come up.

1. Plan for it before you offer. It's one of the costs that comes before closing, even on a VA loan with no down payment.
2. Read the deposit terms. The amount, the deadline and who holds it.
3. Know your dates. Inspection, appraisal and financing deadlines are set in the contract.
4. Act inside those dates. If something comes up, we deal with it before the deadline passes.
5. Ask before you sign. I walk you through it before you decide anything.

• Assuming it's always refundable. It depends on the contract.
• Missing a contract date. The dates decide your options.
• Forgetting to plan for it. Zero down doesn't mean zero dollars. My post on what to ask your lender about a VA loan covers the costs that come first.
• Sending money without confirming where it goes. The deposit goes to the closing agent named in your contract.

Here's an example of how I lay out the steps. It shows the process, and it isn't a real client's story.

• Before the offer. We talk about the deposit amount and your cash before closing.
• The offer. The deposit amount and deadline go into the contract.
• Under contract. I put every date on one calendar and tell you when each one has passed.
• Closing. Your deposit counts toward what you owe.

See how I help buyers, step by step. This describes my general process and isn't legal advice; your contract controls.

What is an escrow deposit?

Money you put down to assure the seller you're serious about buying. It's also called earnest money.

How much is the escrow deposit in Pensacola?

Typically about 1% of the purchase price here. Your contract sets the exact amount.

Who holds the escrow deposit?

The closing agent, which is the title company or the attorney handling your closing.

Can I get my escrow deposit back?

It depends on your contract. If something comes up with the inspection, the appraisal or another issue within your contract's dates, you should be able to get it back.

Vivian Corwin is a bilingual Realtor and Military Relocation Professional with IXL Real Estate Florida in Pensacola, FL, helping military and relocating families buy and sell homes across Pensacola, Pace, Milton, Gulf Breeze, and Navarre. Let's talk about your goals and your timeline. I'll walk you through it before you decide anything.

Read my page for VA and military buyers, or schedule a time to talk with Vivian.