Understanding earnest money deposit - dallas multifamily

[Sanjoy V.]

I am trying to understand the earnest money technicalities. Have a novice question here, bear with me. If you are making a $125k earnest money deposit on a lets say 5.5 million dollar deal. I have been told, it will be applied to closing costs as credit. Lets say for a 20% down, you come up with close to $1,350,000 cash (included 4% closing costs). If you gave away $125k as earnest money out of the 1.35 million cash, do you have to come up with additional $125k to make up the difference? Because I can't imagine there is going to be $125k closing costs. Or do you ask the seller to give back the difference at closing. Because, I don't want to be losing actual $125k hard cash, I'd rather have the bank pay that and I pay 20% of it.