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 part, letting go of your hard-earned dollars. It’s time to wire the down payment and the closing costs.

One business day before your closing date, either your mortgage lender or title company will email you a close estimate of the amount of money needed to close as well as the wire transfer instructions. Unfortunately, the total amount usually is not available farther in advance as the title company needs to receive final figures from your lender (if utilizing a mortgage).

How Do You Pay?

Amounts under $10,000 can be paid with a cashier’s check; however, amounts over $10,000 must be wire transferred. You’ll wire transfer these funds in one lump payment the DAY BEFORE CLOSING at the latest. If the title company is unable to give you the exact amount due by the end of the day, an estimate will be provided by your lender.

Your title company will email you the wire transfer instructions and the account number to which to send the wire transfer.

IMPORTANT: Do NOT follow wire transfer instructions unless they were sent to you by the escrow closer from your title company. Hackers are everywhere, and one scam is to send buyers fraudulent wire transfer instructions in an attempt to divert your dollars into their accounts.

All wire transfer and financial instructions will come via a password-protected or encrypted email from the escrow closer and not from your lender or me.

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 would be fraudulent if the email is fraudulent. Look up the phone number for your escrow closer through Google or by asking me.

Please be aware that 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 a check.

Once you’ve made the wire transfer, call your closer to confirm that the title company received the funds.

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.

Remember, at closing, any overage/extra money you paid will be refunded back to you via a check.