Closing Day is set! You’ve done it, you’re excited, your loan is “clear to close”, and ALL you have left to do is deliver your closing funds to the title company. No worries, you can just write a personal check, right? WRONG. Here are some common mistakes homebuyers can avoid when preparing down payment funds for closing.
“GOOD FUNDS”
There are two main options for Closing Funds, also known as “Good Funds”. You can go into your bank and request an official Cashier’s Check made out to the title company, OR you can wire your funds directly to the Title Company. The Cashier’s check is quick and easy to obtain, and many buyers will pop into their bank on the way to closing. This service is usually free or has a very small cost depending on
the bank. You then hand over your check to the Title Closer and you’re all set! But wait, what if the title company won’t accept a cashier’s check OR your bank isn’t local? Then you will likely be wiring your funds to title and depending on the bank may have additional requirements.
Some banks require you to go into a branch to request a wire, some require a faxed authorization to be submitted in advance, and some require a waiting period before a wire will be sent. These requirements can cause hiccups and delays when you need access to your money, potentially delaying your closing and causing panic for all parties.