How Do You Plan To Transfer Money When Closing On A New Home?

The big day has finally arrived for your transferee. The culmination of a long process moving from one state to another and they are about to close on their new home!  This is the time that funds exchange between buyer and seller to consummate the deal.  The manner in which the funds transfer, either by wire or cashier’s check, is important to research and decide upon well before the anticipated closing date. The equivalent of cash is required before a deed can be recorded.

Funds being used for a new home closing have traditionally been delivered in the form of a certified or cashier’s check. The checks are obtained quite easily through ones bank. There has been a shift in preference, in recent years, by many closing agents to wired funds, and in fact in many states this has become the only acceptable method. 

The reason for the shift centers on both quick availability of the funds from a wire and also the risk of fraud when accepting funds in the form of a check. 

Cashiers/certified checks can quite easily be altered. Previously they had been trusted as the safest way to receive funds. Detection of fraudulent checks is very difficult due to high-quality counterfeit machines and programs.  

Wired funds are also preferred as the money can immediately be disbursed or drawn upon. There could be fees associated with a wire. One also needs to be aware of timing as they are sometimes only sent out once a day by banks. 

Coordination between buyer, lender and closing agent is advised to assure funds will be where they need to be at the right time and in the correct and acceptable manner.

States that always require wires are: Florida, Georgia, Maryland and Nevada. States that require a wire over certain dollar limits are: Indiana, Illinois, Minnesota, Utah and Tennessee. Our expectation is that we’ll see this list grow. 

For corporate transferees, a wire is typically the easiest way to transfer funds anyway. Often times, someone moving to a new states does not have banking set up in the new location. For speed and safety this is the preferred and recommended way to deliver funds to a new home closing.

SIRVA’s portfolio of brands offers unique solutions to help you with all of your relocation needs. SIRVA Mortgage can connect you with experts that make the process simple.