Get your Down payment Ready

Preparing Your Down Payment & Closing Costs

As your closing date approaches, it's time to prepare your down payment and closing costs to ensure a smooth transaction. Here’s what you need to know to stay ahead of the process.

How Much Money Do You Need to Bring to Closing?

💰 Your Total Closing Funds = Down Payment + Closing Costs

• In addition to your down payment, you’ll need approximately 4-6% of the purchase price for closing costs.

• If any portion of these funds is being gifted by a family member, inform your mortgage lender immediately to ensure the underwriter approves the funds.

📌 Consolidate Your Funds

• It’s best to transfer your down payment and closing cost funds into a single account that has been disclosed to your lender.

• Avoid moving large sums of money between accounts at the last minute, as this may require additional documentation for underwriting.

How & When to Transfer Your Closing Funds

In the best transaction, you will know your final figures at least 3 business days before closing. However, quite often, one business day before closing, either your mortgage lender or attorney will email you with:
✅ A final estimate of the total amount needed for closing
✅ Wire transfer instructions for sending your funds to the title company

Payment Methods:
💵 For amounts UNDER $50,000 → Use a cashier’s check
💵 For amounts OVER $50,000 → Wire transfer is required

📌 Wire transfers MUST be completed the day before closing.

• Title companies CANNOT accept wire transfers on the day of closing (except in the form of a cashier’s check).

• The title company may ask you to wire an extra $1,000 – $2,000 in case there are last-minute adjustments—any overage will be refunded to you at the end of closing via check.

Important: Avoid Last-Minute Delays
Since wire transfers often require an in-person visit to your bank, call your bank now to:
✔ Confirm their wire transfer process
✔ Ask if you need an appointment
✔ Find out their cut-off time for same-day wire transfers (usually before 4 PM)

Once the wire transfer is complete:

• Email your attorney and lender so they can confirm the title company received the funds.

Protect Yourself Against Wire Fraud!

🚨 Cybercriminals frequently target real estate transactions to steal closing funds. To protect yourself:
✔ ONLY follow wire transfer instructions sent directly by your lender, attorney, or the title company.
✔ NEVER follow instructions from an unfamiliar email source—even if it looks legitimate.
✔ CALL the title company to verify wire instructions before sending any money.

Final Reminder: Plan for Time Off

Since wire transfers often require you to visit your bank, let your employer know ahead of time that you may need to step out the day before closing to complete the transaction.

If you have any questions about preparing your closing funds, let us know—we’re here to help!