You’re almost there—just two final steps to go! Now comes an exciting milestone: securing your new home by completing the down payment and closing-costs. This is the moment where all your hard work and planning come together!
A day or two before closing, your title company’s Escrow Officer will email you an estimate of your down payment and closing-costs (which are typically 2% to 3% of the
property’s purchase price). Since these figures can vary slightly, it’s recommended that you transfer an extra $1,500 to $2,000 to cover any unexpected adjustments.
Your title company will also inform you whether you can bring a cashier’s check or if a wire transfer is required. If a wire transfer is necessary, they will send you detailed instructions, including the account number to which funds must be wired.
Wire fraud is a serious risk, and scammers frequently attempt to intercept homebuyers’ funds.
To safeguard yourself:
- Request Wire Instructions Directly: If you haven’t received wire instructions, call your escrow officer using the phone number you already have (do not rely on any new phone numbers included in an email).
- Confirm Wire Instructions: Before sending funds, call your title company’s escrow closer to verify the instructions. DO NOT trust instructions from an unverified email or unexpected sender.
- Be Wary of Fraudulent Emails: Scammers hack into the emails of Realtors and attorneys, sending fraudulent wire transfer instructions to unsuspecting buyers. All legitimate wire transfer instructions will come via password-protected or encrypted email from the title company’s escrow closer.
Since wire transfers require an in-person bank visit, plan a block of time to complete the process. Be aware that banks have cut-off times for same-day wire transfers.
- Even if a bank remains open until 8:00 p.m., its same-day wire transfer deadline could be 3:00 p.m. or earlier.
- If your funds are not wired by this cut-off, your transfer will be processed the following day, potentially delaying closing.
To prevent closing delays, complete your wire transfer at least one day—preferably two days—before closing to ensure the funds arrive in time.
After sending the wire transfer:
- Immediately email me and your title company to confirm that the funds have been received.
- At closing, any overage funds from your transfer will be refunded via a check made out to you.
By following these steps carefully, you can ensure a smooth closing process while safeguarding your funds from fraud.
