query: earnest money need to show on the HUD-1

Yes, earnest money aka hand money should be shown on the HUD-1.  The exception is a case in which the funds haven't transferred or a mortgage lender has not been able to verify that the funds have transferred.  In these cases, the deposit is not credited on the HUD-1 because we do not want to imply that there was a deposit if in fact, one did not exist.

Sellers and agents should always deposit an earnest money check and let it clear before the time of closing.  The buyer may need a copy of their cancelled check as proof for their mortgage lender.