If you’ve made it this far, an early congratulations is in order for your soon to be new home but one very important last step remains! One of the final steps is preparing your “cash to close,” which includes your down payment and closing costs. It’s essential to handle this process correctly to avoid delays and ensure a smooth transaction. This blog post will guide you through the options of wiring money or bringing a cashier’s check to your closing appointment.
Understanding Cash to Close
“Cash to close” is the amount you need to complete your home purchase. This includes your down payment minus any deposit already paid, as well as closing costs and adjustments. Before your closing date, your lender or closing agent will send you a Closing Disclosure form, which outlines the amount you need to bring to the closing. This amount can sometimes be adjusted a couple days before so please confirm with your lender what to do. In certain cases, it may make sense to bring slightly more funds than planned to the closing table.
You are also welcome to make multiple wires to the closing agent but I highly recommend consolidating funds into your most used Checking account. I have had situations where certain banks have restrictions on doing Escrow Wires or transactions to title companies. It’s also easier to wire from one account only. Please let me know if you have questions on this.
Option 1: Wiring Funds
Wiring funds is the most common and secure way to handle your cash to close. Here’s how to ensure this process goes smoothly:
- Obtain Wire Transfer Details: A few days before your closing, request the wiring instructions directly from your closing agent. This typically includes the bank’s name, ABA routing number, account number, and recipient details.
- Verify the Information: Always verify the wiring instructions by calling the closing agent directly using a verified phone number. This step is crucial to avoid wire fraud, a common scam where buyers are tricked into wiring funds to fraudulent accounts.
- Initiate the Wire Transfer: Visit your bank with the wiring instructions. It’s best to do this at least a day before closing to ensure the funds are available by the time of your appointment. Remember, banks may charge a fee for wire transfers.
- Confirm the Transfer: After wiring the money, confirm with your bank that the transfer has been initiated. It’s also wise to confirm receipt with your closing agent.
Option 2: Bringing a Cashier’s Check
If you prefer not to wire funds, you can bring a cashier’s check to your closing. Here’s how to use this option:
- Request the Exact Amount: After receiving your Closing Disclosure, contact your bank to request a cashier’s check for the amount listed as your cash to close.
- Obtain the Check Early: Get your cashier’s check at least a day before the closing to avoid any last-minute issues. Keep it safe until the closing day.
- Endorse the Check Properly: Make sure the cashier’s check is properly endorsed. Your closing agent will instruct you on whether to leave the check payable to yourself or to the title company.
Tips for a Smooth Closing Day
- Review All Documents: Before the closing day, review all your documents carefully. Make sure you understand everything you’re signing.
- Prepare Your Identification: Bring proper identification, such as your driver’s license or passport, to the closing.
- Have Your Contact Ready: Ensure you have all necessary contacts handy, including your real estate agent, lender, and closing agent.
Conclusion
Whether you choose to wire the funds or bring a cashier’s check, the key to a smooth closing is preparation and attention to detail. By following the correct procedures and verifying all information, you can ensure that your home buying process is secure and successful. Remember, if you ever have doubts about any part of the process, don’t hesitate to me directly at 720-250-7764 or nick.ross@edgehomefinance.com.
We hope this guide has been helpful to you as a homebuyer preparing for one of the most significant steps in purchasing your home. Good luck with your closing!
