As long as you only lightly watered the medium and not saturated it to begin with, you are fine. Pour the water that condenses on the top back into the tray or it will eventually dehydrate and you will have to add more water again.

This is the same method (plastic dome with heating pad) I use to germinate, and I get a water build up as well. You are doing fine!

I like to tap on the top of the dome and make it rain on the seedlings. Mostly because I am very easily entertained, but I found that it moistens any stubborn seed coats and then I can carefully work them off.

Thanks. Have been using the condensation to water the tray, and some of the seeds are sprouting. Magic! Still have it on the heating pad and now that it has warmed up moving them to a partially sunny window. Now to get the garden beds ready...

I am by far not an expert at starting peppers from seeds, but this is the first year I have started from seeds and it has taken any where from 8 to 18 days as of now for the seeds to germinate and sprout.