Who Do You Make a Cashier’s Check Out to for Closing?

Real estate closings often require the transfer of substantial funds. A common and secure method for these transactions is the cashier’s check, which provides a guaranteed form of payment. Ensuring accuracy in both the payee and the amount on this check is important for a seamless closing process. Correct preparation and delivery of these funds directly impact the efficiency of your real estate transaction.

Confirming the Correct Payee

When preparing a cashier’s check for a real estate closing, the payee is almost always a neutral third party. This entity collects and disburses funds to all parties involved, such as the seller, real estate agents, and service providers. Common payees include the title company, an escrow agent, or the closing attorney or law firm handling the settlement. These entities hold funds securely until all conditions of the sale are met.

The cashier’s check should generally not be made out directly to the seller or the lender. Instead, it goes to a neutral third party. For instance, a title company performs a title search to ensure legitimate ownership and manages the escrow account. An escrow agent safeguards funds and documents until all contractual conditions are fulfilled. A closing attorney finalizes the transaction and disburses funds, ensuring legal compliance.

It is important to always confirm the exact legal name of the payee directly with your closing agent. This verification should happen well in advance of the closing date. Incorrect payee information can lead to the check being rejected, requiring a new one and potentially delaying your closing. Due to fraud concerns, making the check payable to yourself to endorse it later is no longer acceptable.

Determining the Total Funds Needed

The amount required for your cashier’s check will be detailed on an official document provided by your lender or closing agent. This document is typically the Closing Disclosure (CD), or in some transactions, the Settlement Statement (HUD-1). The Closing Disclosure is a five-page form that itemizes all costs and credits associated with your loan and the real estate transaction. It presents a final “cash to close” figure, which is the total amount you need to bring to the closing table.

The cash to close amount includes several components beyond just closing costs. This figure commonly encompasses your down payment, if applicable, and various closing costs such as appraisal fees, attorney fees, inspection fees, and title services. It may also include prepaid expenses, like homeowners insurance premiums and property taxes, collected at closing to set up an escrow account. Carefully review the Closing Disclosure, comparing it against your initial Loan Estimate to identify discrepancies. If any figures appear incorrect or unclear, immediately contact your closing agent or lender for clarification before the scheduled closing.

Steps for Securing and Submitting Your Check

To obtain your cashier’s check, you will need to visit your bank or credit union in person. Some financial institutions may offer online ordering, though this often involves waiting for it to be mailed, which can take several business days. When requesting the check, your bank will require the exact payee name, which you confirmed with your closing agent, and the precise amount from your Closing Disclosure. The funds for the check will be immediately withdrawn from your account or paid in cash at issuance, as the bank guarantees the payment.

Secure your cashier’s check no more than one to two days before your scheduled closing date. This timing minimizes the risk of last-minute changes to the final amount while still providing the necessary funds promptly. Some banks may have daily limits on cashier’s checks, such as $250,000 per check or $500,000 per day for online orders, or require prior notice for very large amounts. Always bring a valid government-issued photo identification, such as a driver’s license, when obtaining the check.

If the final amount changes too close to closing for a new cashier’s check, or for very large sums, a wire transfer is a common alternative. Wire transfers are electronic and process more quickly, though they often incur higher fees, typically $10 to $30, and are irreversible once sent. At the closing appointment, you will present the completed cashier’s check directly to the closing agent, who will then facilitate the disbursement of funds according to the transaction’s terms.