This checklist confirms accurate earnest money credit posting to all applicable line items of your official Closing Disclosure form. Earnest money (the good-faith deposit you submitted after your purchase offer was accepted) is required to be listed as a buyer credit on page 3 of the standard Closing Disclosure, reducing your total cash needed to close. Errors in this credit are among the most common closing document mistakes, and can lead to overpayment at the closing table if not flagged before you sign. Margin Desk created this process to walk you through cross-checking your physical closing file without requiring you to interpret regulatory fine print on your own.
The following printable checklist tracks all required verification steps for your earnest money credit, and can be stored in your physical closing file for future reference:
| Checklist Item | Required Documentation | Pass/Fail Flag | Notes Field |
|---|---|---|---|
| Earnest money amount listed as a credit (not debit) on Closing Disclosure Page 3, Line L | Official signed Closing Disclosure form | ||
| Total earnest money credit matches sum of all submitted deposit receipts and payment confirmations | All earnest money deposit receipts, wire transfer confirmations, canceled check copies | ||
| Earnest money credit amount matches total escrow holding balance listed on title/escrow company confirmation letter | Title or escrow company official escrow funds holding letter | ||
| Earnest money amount matches initial Loan Estimate, or signed change of circumstance form is on file explaining discrepancy | Original Loan Estimate, signed change of circumstance form (if applicable) | ||
| All earnest money adjustments are documented on a signed closing addendum slip with all party signatures | Signed closing addendum slip for earnest money adjustments (if applicable) |
Closing Disclosure line-item cross-reference
The Consumer Financial Protection Bureau (CFPB) standard Closing Disclosure is a 5-page form, and all earnest money credits must be posted in the “Calculating Cash to Close” section on page 3, per federal TRID (TILA-RESPA Integrated Disclosure) rules. The dedicated line for this credit is line L, labeled “Earnest Money Deposit”, and it must appear in the “Credits” column of this section, which subtracts from your total required cash to close. If you see the earnest money amount listed in the “Debits” column, this is an immediate error that will increase your cash to close incorrectly, and must be corrected before you sign. For transactions with multiple earnest money deposits, you can confirm the total is correct by adding all individual deposit amounts together, even if they are not listed separately on the Closing Disclosure. You should also cross-check that the earnest money credit is not duplicated in the “Adjustments and Other Credits” section on page 3, as some title agents accidentally add it there as well, which can lead to a false lower cash to close number that will be corrected at the table, resulting in unexpected out-of-pocket costs. Illustrative example: If your total cash to close is listed as $12,000 with a $5,000 earnest money credit duplicated in both line L and the adjustments section, your actual required cash to close will be $17,000, a $5,000 difference you will be required to pay at closing if the error is not caught early.
Earnest money deposit receipt matching
All earnest money deposits you submit during the home buying process should come with a dated, signed receipt from the receiving party, which you should have stored in your closing folder alongside your offer acceptance letter. To complete this step, pull every receipt, plus any bank confirmations for wire transfers or canceled checks for personal check deposits, and add up the total amount you submitted. This total must exactly match the earnest money credit listed on the Closing Disclosure. If you submitted a deposit to the listing brokerage instead of the title or escrow company, your receipt must include a signed statement from the brokerage confirming they transferred the full deposit amount to the escrow holder, as funds held by a third party are not automatically credited to your transaction unless they are moved to the official escrow account. If any deposit receipt is missing from your file, reach out to the party you submitted the funds to request a duplicate copy, as you will need proof of payment to resolve any disputes about the credit amount. You should also confirm that no unauthorized fees were deducted from your deposit; if the receipt shows a processing or holding fee was subtracted, you must have a written agreement in your file showing you agreed to this deduction, otherwise the full amount you paid must be credited to you.
Title company confirmation letter review
Per TRID rules, the title or escrow company managing your transaction is required to send you a written confirmation of all funds held in your escrow account no later than 3 business days before your scheduled closing date. This letter will list all deposits received, any deductions made from the account, and the current balance being held for your transaction. Locate this letter in your closing file, and cross-reference the listed earnest money balance against the credit amount on your Closing Disclosure. If the letter lists any deductions from your earnest money (such as a pre-agreed repair credit for the seller, or an appraisal fee you opted to pay from escrow), these deductions must be listed as separate line items on the Closing Disclosure, not subtracted from the earnest money credit itself. For example, if your escrow letter shows you have $5,000 in earnest money held, minus a $1,000 repair credit for the seller, your Closing Disclosure should show a $5,000 earnest money credit and a $1,000 debit for the repair credit, not a $4,000 earnest money credit. If you are purchasing a new construction home and your earnest money is held directly by the builder instead of the title company, you will need a matching confirmation letter from the builder’s finance department, signed by an authorized representative, to confirm the deposit amount is being credited at closing.
Loan estimate credit column comparison
Your initial Loan Estimate, which your lender issued within 3 business days of you submitting your formal loan application, also includes an earnest money credit line in the “Calculating Cash to Close” section. Per TRID tolerance rules, this amount must match the amount on your Closing Disclosure unless there is a documented, signed change of circumstance form on file in your closing folder. Valid changes of circumstance include adjustments to your purchase agreement that increased or decreased your earnest money requirement, a mutual agreement between you and the seller to adjust the deposit amount after the Loan Estimate was issued, or a change in your loan program that requires a different deposit amount. If the amount differs and you do not have a signed change of circumstance form, your lender is required to adjust the Closing Disclosure to match the Loan Estimate amount, or provide you with a written explanation of the difference and a signed amendment. Illustrative example: If your initial Loan Estimate listed a $3,000 earnest money credit, and your Closing Disclosure lists a $2,000 credit with no supporting change of circumstance form, you can request your lender correct the line item to $3,000, as this falls under zero-tolerance TRID rules that prevent unexpected changes to closing costs without written notice.
Closing file addendum slip documentation
Any adjustments to your earnest money credit amount that are not covered by the standard line items on the Closing Disclosure or Loan Estimate must be documented on a formal closing addendum slip, signed by you, the seller, your loan officer, and the title agent. This addendum should explicitly state the adjusted earnest money amount, the reason for the adjustment, and confirm that the full amount will be applied as a credit to your cash to close, or to your down payment if you have arranged to use the deposit for that purpose. You should keep a signed copy of this addendum in your personal closing folder, separate from the title company’s official file, for your personal records and future tax filing purposes, as earnest money deposits may be eligible for deduction on your state or federal property tax returns depending on your jurisdiction. If you do not have a signed addendum for any adjusted amount, the title company is not legally required to honor the adjusted credit, so you should request this document as soon as you agree to any changes to your earnest money amount.
If you identify a discrepancy during your review, flag the relevant line item with a sticky note in your closing file and share a copy of your completed checklist with your title agent no less than 2 business days before your scheduled closing date.