At closing, you can get either a cashier’s check or a wire transfer, so the question of whether you get a check at closing or a wire transfer is really a choice you make with your settlement agent beforehand. Sellers typically pick one or the other when the file is set up, and buyers who are owed a refund or credit at closing receive their funds the same way. How quickly the money reaches you depends on the method, your state’s funding rules, and what time of day the transaction wraps up.
Picking the Method Before Closing Day
Your settlement agent will ask how you want to be paid before the closing date. Both options are safe; they differ in speed, cost, and what you have to do on your end.
A cashier’s check is a paper instrument drawn on the bank’s own funds rather than a personal account, which is why settlement agents treat it as good money. You can walk out of the closing with it and deposit it at your bank the same day. Under federal banking rules, a cashier’s check deposited in person with a teller generally becomes available by the next business day. Deposit it through an ATM, a mobile app, or by mail and the hold may extend to the second business day after deposit.1eCFR. 12 CFR Part 229 – Availability of Funds and Collection of Checks (Regulation CC)
A wire transfer moves money electronically through the Federal Reserve’s Fedwire system, which is built for same-day settlement of large transactions.2eCFR. 12 CFR Part 210 Subpart B – Funds Transfers Through the Fedwire Funds Service If the wire goes out before your bank’s daily cutoff, which falls somewhere between roughly 2:00 p.m. and 4:00 p.m. depending on the institution, the funds usually land in your account the same day. Wires sent after the cutoff process the next business day. Your bank may also place a short security hold on a large incoming wire before releasing it for withdrawal.
To set up a wire, the settlement agent needs your bank’s nine-digit ABA routing number and your account number, usually submitted through a formal wire transfer instruction form several days before closing.3Fannie Mae. Sellers Designation of Wire Transfer Instructions (Form 482) Verify every digit with your bank before you send it in. One wrong number can push your proceeds into the wrong account, and recovering a misdirected wire is difficult.
Fees
Wires are faster but cost more. Banks typically charge between $25 and $50 to send or receive a domestic wire, depending on whether you initiate it online or through a banker. A cashier’s check usually costs $10 or less and is sometimes free depending on your account type. These charges are small next to the deal, but the settlement agent may deduct them from your proceeds, so expect to see them on the statement.
When the Money Actually Arrives
Signing the paperwork doesn’t always mean the money moves that same day. The biggest variable is whether you’re closing in a wet funding or dry funding state.
Wet Funding
In most states, the lender wires the loan proceeds to the settlement agent at or before the closing meeting. Once everyone signs, the agent can hand over the seller’s cashier’s check or send the wire that same day. The money is “on the table” when signatures happen.
Dry Funding
A handful of states, including Alaska, Arizona, California, Hawaii, Idaho, Nevada, New Mexico, Oregon, and Washington, allow dry funding. The lender reviews all signed documents for accuracy before releasing the money, which typically takes one to three business days after the signing appointment. The seller has signed away the property but hasn’t been paid yet. Once the lender approves, the settlement agent sends the deed to the county recorder and funds are disbursed.
Recording
Regardless of funding type, the deed must be recorded with the county to provide public notice of the ownership change. Most title companies won’t release seller proceeds until the deed is recorded, which usually happens the same day or the next business day after the lender funds the loan.
Timing within the week matters too. A closing that wraps late in the day, especially on a Friday, often runs past the bank’s wire cutoff, and county recorder offices are closed on weekends. A Friday afternoon closing in a dry-funding state could mean you don’t see your money until the following Wednesday or Thursday.
What Gets Deducted Before You’re Paid
The amount on your closing check or wire is not the sale price. It’s what remains after several mandatory and negotiated deductions. Your Closing Disclosure and the ALTA Settlement Statement give you a line-by-line accounting of every dollar subtracted.4American Land Title Association. ALTA Settlement Statements The Real Estate Settlement Procedures Act requires transparency in how all settlement charges are calculated and disclosed.5eCFR. 12 CFR Part 1024 – Real Estate Settlement Procedures Act (Regulation X)
The most common deductions include:
- Existing mortgage payoff, usually the largest item. It covers your remaining principal plus accrued interest through the disbursement date. Because the exact payoff date isn’t always known in advance, the lender uses a daily interest charge (per diem interest) so the final figure can be adjusted to the actual day the loan is paid off.
- Real estate agent commissions. Commissions are negotiable and typically total around 5% to 6% of the sale price, split between the listing agent and the buyer’s agent. Following industry rule changes in 2024, sellers are no longer required to offer compensation to the buyer’s agent upfront, which has introduced more variation in how commissions are structured.
- Property tax proration, dividing taxes between seller and buyer based on the closing date so you pay only for the days you owned the home.
- Title insurance and recording fees. The title insurance premium protects the new owner and lender against ownership disputes, and recording fees cover filing the deed with the county.
- HOA charges. If the property is in a homeowners association, any unpaid dues or transfer fees are deducted at closing.
The bottom line on the settlement statement, after all deductions, is what you actually take home.
Also Worth Knowing for Buyers
If you’re the buyer, you’re on the paying side. Settlement agents generally require a cashier’s check or a wire transfer for your down payment and closing costs. Personal checks are typically not accepted for these large sums. Your settlement agent will tell you the exact dollar amount, down to the penny, based on your Closing Disclosure.
Buyers sometimes receive money back at closing too. If your earnest money deposit exceeds what’s owed, or if the seller agreed to credits for repairs or closing costs, the difference comes back to you as a check or wire using the same methods above.
Protecting a Wire From Fraud
Wire fraud targeting real estate transactions is a serious and growing threat. In 2023, the FBI’s Internet Crime Complaint Center reported more than $145 million in losses from real estate-related fraud, often through schemes where criminals hack into email accounts and send fake wiring instructions that redirect closing funds to fraudulent accounts.6IC3. 2023 Internet Crime Report
The most important rule: never trust wiring instructions received by email alone. Before sending any wire, call your settlement agent or title company using a phone number you looked up independently, not one from the email itself, and verbally confirm every digit of the routing and account numbers. Be especially suspicious of last-minute changes to wiring instructions. Title companies rarely change their bank details mid-transaction.
A few more habits worth keeping:
- Get wiring instructions in person when you can. Pick them up at the title company’s office rather than receiving them electronically.
- Confirm receipt immediately. After sending a wire, call the title company right away using a trusted number to verify the funds arrived in the correct account.
- Watch for red flags. Urgent language, pressure to act immediately, or instructions that differ from what you previously received are all warning signs.
If you think your wire was misdirected, contact your bank immediately to attempt a recall. The faster you act, the better the chances of recovering the funds.
If a Cashier’s Check Goes Missing
Losing a cashier’s check for tens or hundreds of thousands of dollars is alarming, but there is a legal process for replacement. Under the Uniform Commercial Code, a claim on a lost, destroyed, or stolen cashier’s check becomes enforceable at the later of the date you file the claim or 90 days after the date printed on the check.7Legal Information Institute. UCC 3-312 – Lost, Destroyed, or Stolen Cashiers Check, Tellers Check, or Certified Check You may need to wait up to 90 days before the issuing bank reissues the funds, because the bank needs that window to protect against someone else cashing the original. That waiting period is one reason many people handling large sums choose a wire transfer, despite the higher fee.