Step 22: Wire Transfer Your Down Payment

You’ve finally made it to the end – only two more steps to go. Now comes the painful one; parting with your hard-earned dollars. It’s time to wire the down payment and the closing costs.

The morning before closing, your mortgage lender will email you an estimate of your down payment and closing costs (remember closing costs are usually 2 – 3% of the purchase price of the property). Also, your mortgage lender will ask you to transfer over little extra money just in case the closing cost figures are off at all. Generally, you won’t get this figure until the morning before.

Your title company will email or call the wire transfer instructions which gives you the account number to send the wire transfer. Plan to take a long lunch break from work as you have to go into your bank to conduct a wire transfer.

Make sure you find out what time your bank stops accepting same-day wire transfers as it’s not the same as their regular business hours. Therefore, they may be open until 8 pm, but the cut off for same-day wire transfers is 3 pm. In that scenario, you’re going to need to finish the wire transfer before 3 pm.

I can’t state loudly enough how crucial it is that the wire transfer is done the day before. If you don’t transfer the funds the day before closing, closing has to be delayed because the Title company will not accept cash or check.

Once you’ve sent over the wire transfer, check to make sure the Title company received the funds.

IMPORTANT: do NOT follow wire transfer instructions unless they were sent to you by the escrow closer from the Title company.

I cannot stress enough that all wire transfer and financial instructions will come via a password-protected or by encrypted email from the escrow closer and not from your lender or me. There are a lot of scammers out there who have been hacking into Realtor emails lately and sending buyers fraudulent wire transfer instructions in an attempt to divert your $ into their accounts.

Before you transfer your funds, call the escrow closer directly to confirm the wire-transfer instructions. DO NOT rely on the phone number in the email as this number could be fraudulent as well if the email is fraudulent. Look up the phone number for the escrow closer through Google or by asking me, and call that number instead.

AGAIN, I urge you to be careful when sending over your wire transfer to make sure it isn’t being directed to a fraudulent account.

Just as a reminder, at closing you’ll get a refund check back made out to you for the overage closing cost funds you transferred.






Have any questions?

Call or text: 317.413.1360

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Posted on November 20, 2018 at 2:11 am
Lee Ann Balta | Category: Buyer Step by Step

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