How to Wire Money for Closing: What Homebuyers Need to Know

"If you're getting ready to close on a home, you'll likely need to wire money for closing. For many buyers, this means sending one of the largest payments they've ever made-often tens or even hundreds of thousands of dollars-to a title or escrow company. But moving a large amount of money under a tight deadline can feel daunting, especially when you consider all the stories about wire fraud or delayed closings."

"Wiring money at closing means sending funds electronically from your bank account directly to the title or escrow company that's handling your home purchase. Standard bank transfers can take several business days for funds to fully clear. But a wire transfer moves money quickly, usually within the same business day, and the money becomes available as soon as it's received, essentially treating the transaction as cash."

Wire transfers at home closing send funds electronically from a buyer's bank directly to the title or escrow company handling the purchase. Wire transfers clear much faster than standard bank transfers, often within the same business day, and the funds are available immediately upon receipt, effectively acting as cash. Fund transfers for closing commonly include the remainder of the down payment, closing costs, prepaid property taxes and homeowners insurance, lender fees, and escrow adjustments. Because wire transfers are verified, guaranteed, and generally irreversible once sent, many title or escrow companies prefer them for large real estate transactions. Title or escrow companies provide written wiring instructions, typically via a secure portal or encrypted email, containing the account and routing details required to execute the transfer.

Read at Redfin | Real Estate Tips for Home Buying, Selling & More