You need money for your closing and the closing costs and you usually have to send that money to the closing via a bank wire transfer.
Q: I am buying my first home and I’m wondering how I actually pay my down payment at the closing. The real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. agentAn Agent is an individual who acts on behalf of a consumer. A real estate agent represents a buyer or a seller in the purchase or sale of a home. Licensed by the state, a real estate agent must work for a broker or a brokerage firm. An insurance agent helps a consumer purchase an insurance policy. Insurance agents are also licensed by the state.A Real Estate Agent is an individual licensed by the state, who acts on behalf of the seller or buyer. For his or her services, the agent receives a commission, which is usually expressed as a percentage of the sales price of a home and is split with his or her real estate firm. A real estate agent must either be a real estate broker or work for one. asked me for a small check as a good faith deposit, but I can put down more – and want to.
Should I bring cash to the closing? If not, will the sellers take a personal check?
A: Personal checks are not accepted at the closing table for any amount over a few dollars. That’s because it is easy to pass a bad check and no way to truly verify that the funds are in your account at that moment.
Unfortunately, titleTitle refers to the ownershipOwnership is the absolute right to use, enjoy, and dispose of property. You own it! of a particular piece of property. companies and escrow companies don’t take cash. (Really, would you come to the table with $50,000 in cash?)
Instead, you’ll want to have a cashier’s check drawn at your bank. The bank will verify that the funds are in your account, and that should be good enough for the title companyA Title Company is the corporation or company that insures the status of title on real estate (called title insuranceTitle Insurance is insurance that protects the lenderA Lender is a person, company, corporation, or entity that lends money for the purchase of real estate. and the property owner against losses arising from undisclosed defects or problems with the title to property.) at a closing, and may handle other aspects of the real estate closing.. These days more and more title companies and closing agents will require you to wire transfer the funds from your bank account to the title company’s or closing agent’s bank.
If the closing agent has the funds in its account, the closing agent has a greater comfort level to close the transaction.
Your closing officer at the escrow or title company (or real estate attorneyA Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate., if you’re using one) should be able to provide you with a list of items needed for the big day. However, your lender, if you are using one, should have given you an estimate of most charges you might expect to see at the closing, along with an estimate of the amount of money you will have to bring to the closing.
Based on this estimated amount, less any amount you have given under your contract is what you will need to bring to the closing to buy your first home.
You might be happy to get your money delivered to the closing early, but you should actually time the delivery of your money to coincide with the closing date or be early by a day or two. You usually don’t want your escrow money or earnest money sitting around a closing agent, title company or settlement agent’s offices too long.
Also, while you might want an exact number for your closing or settlement weeks in advance of the closing, you might only get them the day before closing or settlement. If you are nervous about the amount you might need, you can have the funds ready to go for your closing or settlement and send them as soon as you get the bottom line. You might even be able to send the funds that you estimated and go a bit higher than that and send those funds to your closing or settlement.
If you send too much money to your closing or settlement, the closing or settlement agent will either wire the funds back to your bank or can cut you a check back for the difference right at the closing table.
Also, for more information on closing costs and what closing costs to expect, take a look at our closing cost estimator and closing cost articles right here at ThinkGlink.com.