Your earnest money (deposit money) is used as a payment toward your home. It is deducted on your HUD-1 form at settlement. If your purchase price was $200,000 and you put a deposit of $5,000, then the actual amount at that point would be 195,000. Hope that helps.

Are you buying a home in Berwyn?

Ute is right on with her answer. You will see the earnest money deposit reflected on your good faith estimate and later again on your settlement statement. Your lender will likely want proof of this payment so plan on providing a copy of the cancelled check as part of your loan application.
http://www.GregZaccagni.com

Hello Sirenya. The earnest money is credited to you at the closing and you can certainly use it as part of the down payment. If you make an offer on a property for $100,000 with a 90% loan and $1,000 earnest money. That means you have to pay $9,000 plus closing cost at closing. I hope this answers your question.