This just in from a first time California home buyer – “Got it covered. I have all the money in my account. I’ll write escrow a check (for down payment and closing costs) on Monday when I come in to sign my loan docs.”
No, We Don’t Accept Personal Checks
Bzzzzz. Wrong answer. Stop the moving van. Escrow won’t take a personal check for your down payment and closing costs. Should have checked ahead. Wire transfer is always the right answer when it comes to delivering funds to escrow after your initial deposit. And just so you know, most banks won’t fund your loan to purchase a home unless you’re own personal money has been received first. Guess they want your skin in the game before they put in theirs.
Maybe Not Even a Cashier’s Check!
And check this out. Most escrow companies will also take a cashier’s check for a buyer’s funds. But…. I just dealt with an escrow company who wouldn’t take a buyers cashier’s checks since every single one of the three checks was for over $100,000.00. Seriously. Buyer had to take three huge cashiers checks back to the bank (on top of all the time and effort to go to three separate banks in the first place to have the cashier’s checks drawn!!) and set up wire transfers instead. Because the escrow company had a stated policy of not accepting cashier’s checks for more than $100,000.00. Which he would have know in the first place if he had 1. read the delivery of closing funds instructions that came with the loan documents or B. called escrow to verify how to delivery closing funds. Hello! Delayed the close and almost put him on the street since he had packed the moving van. It was close, but the transaction recorded in time for him to get his stuff delivered.
Avoid Costly Delays – Plan Ahead
Moral of this story? Check ahead on the method of payment and the timing of your funds to close. No personal checks to escrow after your initial deposit. Your home inspector will take a personal check. Your appraiser will take a personal check. Your termite guy will take a personal check. Cashier’s check? Maybe OK – but check first on the amount and the timing. But when it comes to down payment and closing costs – use a wire transfer to move the money. And follow the instuctions escrow gives you. Double check the account numbers – you don’t want your $$ going to the wrong account. Which has happened. Kept calling and calling to check that title had received the funds from a buyer’s loan. Title officer finally found them, in the wrong account. Oops.
Never thought this would be this long of a story – but the details are important. Wire transfer’s usually have a cut off of 11:30 – the wire has to be set up at your bank by 11:30 AM on a business day for funds to be received by the recipient by that afternoon. Anything after 11:30 and the funds won’t get where you’re sending them until. Buying a home? Best case is wire your funds in a couple of business days before you’re supposed to close the deal. At lease a couple of days. Safety first is a good motto.
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