How to Bring Money to Closing Securely

Bringing money to a real estate closing is a significant step in the home buying journey. This final transaction requires careful planning and precise execution to ensure a smooth transfer of funds. Understanding the specific financial requirements and secure methods for delivering funds is paramount. This preparation helps prevent delays and safeguards against potential financial risks.

Understanding Your Closing Costs and Final Amount Due

Understanding the total amount due at closing begins with a review of the Closing Disclosure (CD), a document detailing final loan terms and closing costs. Lenders are required to provide this document to borrowers at least three business days before the scheduled closing date, allowing time for examination. This mandatory review period, established under the TILA-RESPA Integrated Disclosure (TRID) rule, ensures transparency and helps borrowers understand all charges.

The “money to close” figure in the CD includes the remaining portion of your down payment, after accounting for any earnest money deposits. It also encompasses various closing costs, such as lender origination fees, title insurance premiums, escrow fees, and government recording fees. The CD also itemizes prepaid items, which are payments for expenses accruing after closing, like property taxes and homeowner’s insurance premiums often collected to establish an escrow account.

It is important to compare the Closing Disclosure with the initial Loan Estimate. While minor fluctuations are expected, significant discrepancies in fees or loan terms should prompt inquiry. If questions or inconsistencies arise during your review, promptly contact your lender or the title company for clarification. Addressing these concerns before the closing date is essential to avoid surprises and ensure accuracy.

Choosing and Securing Your Payment Method

For real estate closing, the most secure method for large sums is a wire transfer. This method moves funds from your bank account to the title company or attorney’s escrow account, ensuring a traceable transaction. The irreversible nature of a wire transfer makes security protocols for obtaining instructions important.

To prevent financial fraud, it is essential to verify wire transfer instructions through a trusted communication channel. Never rely solely on email instructions, as cybercriminals intercept communications and send fraudulent wiring details. Always call a verified phone number for the title company or closing attorney, found on their website or a verified document. Confirm all routing and account numbers verbally before initiating transfer.

Another accepted payment method, particularly for smaller amounts, is a cashier’s check, also known as a certified check. This check is drawn on the bank’s funds, guaranteeing its legitimacy. Obtain a cashier’s check directly from your bank, but inquire about daily limits or processing times. While more secure than a personal check, some title companies may prefer or require a wire transfer for the total amount due.

Personal checks and cash are not accepted for closing funds. Personal checks are not accepted because they require time to clear funds, delaying closing. Cash transactions are avoided due to anti-money laundering regulations and logistical challenges of handling large sums of cash. Adhering to accepted payment methods ensures compliance and a smoother transaction.

Completing the Transaction at Closing

Bringing your funds to closing involves careful timing. If sending a wire transfer, initiate it at least one business day before closing. This allows time for funds to process and appear in the title company’s or attorney’s escrow account, preventing delays. Confirming fund receipt by the closing agent prior to your appointment provides peace of mind.

On the day of closing, bring specific items. A valid government-issued identification, such as a driver’s license or passport, is required for verification. Bring a copy of your Closing Disclosure for reference, ensuring all figures align. If your payment method for any remaining balance was a cashier’s check, bring the physical check.

At the closing table, confirm the arrival of electronically transferred funds or present the physical cashier’s check. Once funds are verified, you will sign legal documents that finalize the purchase and transfer of ownership. These include the promissory note, mortgage or deed of trust, and the deed. After all documents are signed and funds are disbursed, the transaction is complete, and you receive the keys to your new property. The deed and other documents will then be sent for recording with the local government office.