If you’re preparing to close on a home, you’ll likely need to wire money for the closing. For many buyers, this means sending their largest payment ever to a title or escrow company, often in the tens of thousands or even hundreds of thousands of dollars.
But moving large amounts of money under tight deadlines can be daunting, especially considering all the stories about wire fraud and delays in completing transactions.
The good news for homebuyers is that sending money at closing is a fairly standard practice these days. By understanding the steps, timing, and safety precautions, you can safely and efficiently transfer money to buy a home.
What does it mean to send money at closing?
Transferring money at closing means transferring funds electronically from your bank account directly to the title company or escrow company handling your home purchase.
Standard bank transfers may take several business days for funds to fully clear. However, because wire transfers transfer funds quickly, usually within the same business day, and funds are available as soon as they are received, the transaction is essentially treated as cash.
Many title companies prefer wire transfers for larger financial transactions, such as real estate purchases, because the funds are verified, guaranteed, and usually cannot be reversed once transferred.
If you transfer your earnest money early in the purchase process, your final transfer at closing often includes:
Remaining down payment amount Closing costs Prepaid property taxes and homeowners insurance Lender fees and escrow adjustments
How to send money at closing (step by step)
When transferring money to close on a home, there are some important details to keep in mind to ensure the process goes smoothly and safely.
Step 1: Check wiring instructions
The title company or escrow company will send you written wiring instructions, usually via a secure portal or possibly encrypted email. These typically contain all the information needed to perform a wire transfer.
Bank name Routing number (ABA number) Account number Beneficiary name Property address or file number for notes/reference
This is where fraud prevention is most important. Most wire frauds occur by email impersonating an agent or title company, telling you that your details have changed or that you need to act immediately.
Before transferring funds, please be sure to:
Call the title company using the phone number on their official website. Read and confirm your routing and account number. Please check if the wiring instructions have changed in any way.
Example: “Hello, I’m [Name]So, I’m trying to wire the funds for closing. [address]. I would like to confirm the account and routing number I received. ” Please read out the numbers. Proceed with the transfer only if the numbers match.
Step 2: Check your bank’s wire policy beforehand
Each bank has its own rules, regulations, and restrictions when it comes to wire transfers. If online transfers are an option, there may be a daily limit (i.e. $25,000) and the cash required for closing may be higher.
If your closing amount exceeds the daily limit, you may be required to request a temporary increase, split the transfer (if escrow allows), or visit a physical branch to initiate the transfer.
Please check the following before the deadline:
Make sure you have funds available in the account you’re sending the money from Check your bank’s transfer deadline (usually between 2pm and 4pm) Bring two forms of identification if you’re visiting a physical store
Wire transfer costs: There is a small fee of $15 to $50 for domestic transfers (may be more for international transfers). When contacting your bank, ask whether the fee will be deducted separately from your account or included in the total transfer amount.
Step 3: Check financial disclosure information
At least three business days before closing, your lender will send you a closing disclosure statement, or financial statement. This document shows the final loan terms and the exact amount you must have available by closing under the column labeled “Cash to Closing.”
Important information for financial disclosure considerations:
Please confirm that the deposit has been received. Verify that the seller’s credit (if any) is reflected. Ask your lender about last-minute adjustments. Before you sign, check to see if your lender requires you to receive the funds.
Do not extrapolate or round numbers. Please send the exact amount listed unless directed otherwise by the escrow officer. If there are any discrepancies, you can usually sort them out at the closing table. If the wire is too large, you will receive a refund, or you may receive a small credit for last-minute adjustments.
Step 4: Start the transfer 24-48 hours in advance
Transfers initiated after your bank’s cut-off time may not be delivered until late the next business day. So if you have a deadline coming up, or there are weekends or holidays between deadlines, you should take that into consideration when deciding when to wire transfer.
For the smoothest closing:
Send your wire at least one business day before closing. Please start the transfer as soon as possible. If Monday is a regular holiday, please avoid wiring on Friday (there will be delays on weekends). Be aware of holidays and plan your wire transfers accordingly.
While many domestic transfers clear the same day, delays can occur due to fraud reviews, high value checks, and even bank processing queues. Having a little buffer will ensure that your funds clear and reach the closing table on time.
Step 5: Verify funds were sent (and received)
As soon as you transfer money for closing, ask for a receipt with the transaction reference number. Next, call your escrow officer to confirm that you received the funds.
Don’t expect everything to be completed automatically. Some title companies require acknowledgment of receipt before allowing documents to be recorded, so checking early can prevent unexpected delays.
How to avoid wire transfer fraud at closing
Wire fraud is one of the biggest risks in the closing process, but it is also preventable.
Scammers may gain access to a real estate agent or title company’s email account and send convincing emails with fake wiring instructions in hopes that the buyer will transfer funds without verifying the details. However, title companies typically do not change wiring procedures midway through a transaction.
Here’s how to protect yourself.
Always verify wiring instructions over the phone using a trusted phone number. Be suspicious of last-minute changes or urgency. Watch out for unusual email addresses (such as @gmail or @yahoo) and misspellings. When transferring online, use a trusted computer and a secure Wi-Fi network. Please double check all numbers and details before submitting.
If you think you sent money to the wrong account, contact your bank immediately. Initiate a power line recall and ask the title company to notify you immediately. Although acting quickly increases your chances of recovery, most wire transfers are final and cannot be reversed.
Should I use a check or wire transfer for closing?
When signing a contract for a home, money brought in in any form is not acceptable.
That’s because title companies must follow so-called “good capital” requirements. This basically means that the funds used to complete the transaction must be verified and available immediately before the transaction is completed.
Personal checks usually do not meet this criteria because they can take several days to clear. Therefore, buyers typically finance the closing in one of two ways.
Wire Transfer Cash Check
Both have verified funds and are therefore considered safe and reliable.
For large amounts, wire transfers are often preferred because they can be confirmed quickly and there is no need to physically transport the check. Depending on your title company’s policies, you may still be allowed to use checks.
These requirements vary, so it’s a good idea to ask the title company in advance which method is preferred.
Common issues that can occur with wire transfers
Transfers typically take 1-4 hours as the funds are not fully settled. If it’s longer than that, call your bank and give them the reference number to double check that it hasn’t been flagged by the fraud department. If funds were recently transferred to your account, your bank may restrict the transfer until the funds are officially cleared.
Wrong or misspelled name: Usually, as long as the account number and routing number match, the money will be deposited. However, some banks are more strict than others. Always use your name exactly as it appears on your ID.
The money was not transferred on time. If you miss the deadline, the title company may still require you to sign the document (this is called signing escrow). You cannot receive the keys until the funds officially arrive. Failure to do so could delay your signing schedule and affect your mortgage rate lock.
Transferring money at closing is not complicated
Transferring large sums of money to buy a home can be daunting, but wire transfers make it easier than most buyers think. Make sure funds are available in the source account as soon as possible, be aware of your bank’s wire transfer policies, and always check with the title company in person or over the phone to confirm transfer instructions before transferring.
Following these steps will help your closing day go more smoothly.
