Paying cash for your new home? As closing day approaches, you’ll need to know exactly how much is still owed—after accounting for your Earnest Money deposit and any miscellaneous fees—when that final amount will be available, and how to safely transfer the funds to the title company. This guide will walk you through each step and help you avoid common pitfalls.
Timing of Final Numbers: When You’ll Know the Exact Amount
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- We typically receive the exact amount needed for closing within three business days of the closing date.
- It’s unlikely we’ll have this number sooner, so plan accordingly.
Wiring Funds: Ask Questions, Plan Ahead, and Avoid Delays
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- The title company will require a wire transfer for your funds
- A week or so before closing, contact your bank to ask how long it takes to process a wire and what steps are required to initiate it.
- Some banks—especially smaller or local ones—require you to appear in person to authorize a wire. This can be a significant issue if you’ve traveled or relocated before closing.
- If your funds come from an IRA or 401(k), don’t assume those institutions can send a wire the day before closing. These transactions often take several days to process.
- Confirm all of this early to avoid last-minute complications or delays.
- At a minimum, plan to initiate the wire 1-2 business days before closing.
Wire Fraud is Real—Be Extremely Cautious
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- Never trust wire instructions sent by email or text.
- We at Navigate will never email you wire instructions, nor will the title company.
- Criminals create emails that look legitimate. If you mistakenly wire funds to the wrong account, recovery is highly unlikely.
To stay safe:
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- Pick up wire instructions in person from the title company, or
- Call the title company directly and have them provide instructions over the phone.
** If you ever receive wire instructions by email or text, assume it’s a scam. **
What If You Wire the Wrong Amount?
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- If you wire too much: The title company will refund the difference at closing.
- If you wire too little: Most title companies will accept a personal or cashier’s check to cover small differences.
- If you want to avoid any last-minute issues, it’s fine to slightly overestimate—the title company will issue a refund if needed.
Questions? Don’t hesitate to reach out. We’re always happy to walk you through the process.