At a U.S. real estate closing, you pay by wire transfer or cashier’s check for the exact “Cash to Close” figure on your lender’s Closing Disclosure, and you verify the payee details by phone before sending a cent. Everything else about how to pay at closing follows from those two facts: the amount comes from a document your lender is required to hand you in advance, and the delivery method has to be one the title company can treat as final money the moment it arrives.
Start With the Cash to Close Number
Your lender must send you a Closing Disclosure at least three business days before your scheduled closing date.1Consumer Financial Protection Bureau. What Should I Do If I Do Not Get a Closing Disclosure Three Days Before My Mortgage Closing? The figure that governs your payment is labeled “Cash to Close” on page three. It is the total you need to deliver at the closing table after your down payment, lender credits, prepaid property taxes and insurance, and all closing costs are accounted for.2Consumer Financial Protection Bureau. Closing Disclosure Explainer
Compare that number against the Loan Estimate you received earlier. If anything doesn’t match, ask your lender to explain each difference before closing day. Some changes to the Closing Disclosure reset a fresh three-business-day waiting period and push your closing back, so it’s better to resolve questions the moment you spot them.3Consumer Financial Protection Bureau. TILA-RESPA Integrated Disclosure FAQs
Paying by Wire Transfer
Wire transfer is the default at most closings because the money settles immediately and irrevocably. Domestic wires move through the Federal Reserve’s Fedwire Funds Service, a real-time gross settlement system that processes each transfer individually and treats the funds as final the moment the receiving bank has them.4Federal Register. Federal Reserve Action to Expand Fedwire Funds Service and National Settlement Service Operating Hours Nothing bounces, nothing gets held, and the title company can record the deed with confidence.
To send one, bring the verified wiring instructions to your bank along with government-issued photo ID. The bank enters the routing number, the escrow account number, and the exact dollar amount, then has you sign an authorization. You’ll get a confirmation or reference number. Pass it along to your escrow officer so they can track the incoming money.
Timing matters. Fedwire only runs during business hours, so a wire initiated late in the afternoon may not land until the next morning.5Federal Reserve Financial Services. Wholesale Services Operating Hours If your closing is scheduled for the morning, send the wire the business day before. Expect a fee of roughly $20 to $40 for an outgoing domestic wire, though it varies by bank and some waive it for certain account holders.
Paying by Cashier’s Check
A cashier’s check is the alternative when a wire isn’t practical. Unlike a personal check, a cashier’s check is guaranteed by the bank: when you request one, the bank pulls the money from your account immediately and issues the check drawn on its own funds. The title company can accept it knowing it will clear.
Make the check payable to whichever entity your escrow officer specifies, which is usually the title or escrow company rather than the seller. Get that exact payee name in writing before you go to the bank. A misspelled or wrongly directed cashier’s check can delay closing while you get a replacement issued. Carry it to the closing meeting yourself; it isn’t something to mail.
What Won’t Work
Personal checks almost never cover the main closing balance. They take days to clear, and most jurisdictions have “good funds” laws that require settlement agents to collect only funds that are immediately and irrevocably available.6Federal Register. Anti-Money Laundering Regulations for Residential Real Estate Transfers Some title companies accept a personal check for a small portion of closing costs under a set threshold, but plan on certified funds for the bulk.
Physical cash creates a different problem. Title companies aren’t set up to count, secure, and report large cash deposits, and most simply refuse. Federal law requires a currency transaction report for cash transactions above the Treasury threshold, and that reporting burden is one nobody at the closing table wants.
ACH transfers usually aren’t fast enough either. Traditional ACH takes one to three business days to settle. Some newer digital closing platforms offer secure portals that handle payment electronically with instant confirmation, and if your title company uses one, they’ll tell you. Don’t assume ACH is available unless it’s specifically offered.
Verify Every Wire Instruction Before You Send
Real estate wire fraud is common, expensive, and rarely recoverable. Between 2019 and 2023, the FBI’s Internet Crime Complaint Center received reports from more than 58,000 victims who collectively lost $1.3 billion to real estate fraud.7FBI. FBI Boston Warns Quit Claim Deed Fraud Is on the Rise The typical scheme: a criminal gets into an email account belonging to your agent, lender, or title company, then sends you wiring instructions that look legitimate but route to the criminal’s account. Once a wire settles, banks generally cannot reverse it.
A few habits keep you out of that trap:
- Call to verify. Confirm every detail of the wiring instructions by phoning your title company or escrow officer at a number you obtained earlier in the transaction, never a number pulled from the email carrying the instructions.
- Treat last-minute changes as fraud. Title companies and lenders don’t quietly switch bank accounts the day before closing. An email announcing a “new” or “updated” account is almost always the scam.
- Skip email links. Don’t click links embedded in emails about wiring. Go to the title company’s website or secure portal using a URL you’ve previously confirmed.
- Move fast if something is wrong. If you suspect you’ve wired to a fraudulent account, call your bank within minutes and ask them to initiate a recall, then file a complaint with the FBI’s Internet Crime Complaint Center.
What to Bring to the Closing Table
Bring unexpired government-issued photo ID, such as a driver’s license or passport. Federal customer identification rules require banks to verify it before processing large transactions, and the settlement agent will need it too.8eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks If you’re paying with a cashier’s check, hand it directly to the settlement agent, who will verify the amount and issuing bank against the final settlement statement. If you wired, the escrow officer confirms receipt using the reference number your bank gave you.
Once the settlement agent confirms all funds have arrived, you sign the remaining closing documents, the title company disburses payments to the seller and other parties, and the deed and mortgage are submitted to the county recorder for official recording.9Consumer Financial Protection Bureau. What Can I Expect in the Mortgage Closing Process? You get the keys once recording is confirmed or, in some areas, once the settlement agent authorizes release.
Before the lender will fund, expect two prerequisites. Your lender generally requires proof of homeowner’s insurance, sometimes called hazard insurance, covering the property.10Consumer Financial Protection Bureau. What Is Homeowner’s Insurance? Why Is Homeowner’s Insurance Required? You’ll also want to complete your final walkthrough beforehand to confirm the property is in the agreed condition and any negotiated repairs were made. Problems caught before signing are far easier to resolve than problems caught after.
If Your Funds Are Late
A funding delay does real damage. Many real estate contracts include “time is of the essence” language, which makes the closing date a hard deadline. Missing it is a material breach, and the seller can terminate the deal or sue for damages. Depending on how your contract is written, the seller may also keep your earnest money.
Even without that clause, a late closing sets off other problems. Your rate lock can expire, which can cost you thousands over the life of the loan if rates have risen. The seller may have their own closing scheduled the same day, so your delay can blow up their transaction too. If they’ve already moved out, they’re carrying costs on a home they’ve mentally left, and that patience runs out quickly.
The common causes of funding delays are all avoidable: sending a wire too late in the day for it to process, using the wrong account number, or not funding your bank account early enough to cover the wire or cashier’s check. Have your money in position at least two business days before closing, verify wiring instructions by phone the day before, and initiate the transfer early enough for it to arrive before your scheduled closing time.