Buying a house is a momentous occasion filled with excitement for anyone. However, the process of completing the final steps and wiring money for closing can be intricate and nerve-wracking. It is crucial to understand when and how to wire money during this critical phase to ensure a smooth home purchase.
In this blog post, we will provide step-by-step guide on how you can wire money for closing.
A wire transfer is an electronic transfer of funds from one bank account to another. Wire transfers are made through a network that is administered by banks and transfer service agencies around the world.
Wire transfers can be made from one bank account to another bank account, or through a transfer of cash at a cash office.
Different wire transfer systems and operators provide a variety of options relative to the immediacy and finality of settlement and the cost, value, and volume of transactions.
Wire transfers are important tools for anyone who needs to send money quickly and securely, especially when they aren’t in the same location.
Wiring money for closing marks one of the pivotal stages in the home buying process. It becomes imperative to acquire a comprehensive understanding of how to wire funds securely and accurately, thereby guaranteeing a seamless closure.
To initiate the wire transfer, make sure you have accurate and up-to-date information. Contact your title company, escrow agent, or attorney for confirmation of the wire transfer details. This typically includes the recipient’s name, bank name, bank address, routing number, account number, and the amount to be wired.
To complete the wire transfer for the closing, you are required to personally visit your bank or credit union. It is essential to choose a reputable financial institution to oversee this process, given the considerable amount of money involved. Furthermore, you must ensure to bring proper identification, account information, as well as any relevant documents provided by your real estate professional.
Once you arrive at your bank, request a wire transfer form or visit the bank’s wire transfer department if available. You’ll need to fill out the form with the following details:
Banks commonly charge fees for wire transfers, which vary based on the specific institution and the amount being transferred. It is important to ask about the associated fees when initiating the transfer. Moreover, if you are sending money internationally, there might be additional charges for currency conversion and other fees to consider.
Before submitting the wire transfer request, review all the information on the form for accuracy. Verify that the recipient’s details match the information you received from your title company or attorney. Mistakes in the recipient’s account information can result in delays or complications.
Once you are confident that all the information is accurate, proceed by signing and submitting the wire transfer form to the wire transfer department of your bank. It is important to retain copies of all transaction documents for your records, including the wire transfer form, receipts, and any communication with the recipient.
After the wire transfer is initiated, it’s a good practice to follow up with the recipient, such as your title company or escrow agent, to confirm that they have received the funds. This helps ensure that the closing process proceeds as planned and that there are no delays.
It is not recommended to wire money on the day of closing. While wires can be processed quickly, there is no guarantee of timely availability, potentially causing delays. To ensure a smooth closing process, it is recommended to initiate the wire transfer one to two business days prior to the closing date.
The wired funds are typically received by the title company or closing attorney, who is responsible for disbursing the funds after closing.
Wire transfer fees can vary based on the bank and the type of transfer. According to a survey conducted by NerdWallet, wire transfer fees typically fall within a range of $0 to approximately $50. The median fee for outgoing domestic wire transfers is around $25.
If you have any questions or concerns about wiring money for closing, be sure to talk to your title or escrow company. They will be able to help you through the process and ensure that everything goes smoothly.