Contract requirement
The amount and timing are governed by the purchase agreement and local transaction practices.
Earnest money
Earnest money shows commitment, but it is still part of the transaction funds.
An earnest money deposit is typically delivered after contract acceptance and is generally credited toward the buyer's funds due at closing, subject to the purchase agreement.
Source of funds
Mortgage underwriting may require documentation showing where the deposit came from.
Credit at closing
The documented deposit is generally reflected as a credit toward the buyer's cash-to-close calculation.
Contingencies
Whether the deposit is refundable can depend on contract terms and applicable contingencies.
Wire safety
Wire instructions should always be independently verified because real estate transactions are frequent targets for fraud.
Plan liquidity
Do not commit funds needed for reserves or other closing obligations without understanding the full cash requirement.