How to Wire Money for Closing

Buying a home is a major investment and a substantial financial commitment that requires a large sum of money to be transferred at closing. Buyers need to make their cash-to-close payment, which includes closing costs, the down payment, and the earnest money deposit, on or before closing day to complete the transaction. 

The most efficient way to send these funds is through a wire transfer, also known as a bank transfer or electronic funds transfer (EFT). It can be intimidating to wire tens of thousands of dollars, especially if you’ve never done it before, so we’ve broken down how to wire money for closing step-by-step, so you can close with confidence.

Step 1: Get the wiring instructions

The first step to securely wiring money is to obtain the correct wiring instructions. Buyers should receive these instructions from their title company or closing attorney a few days before closing, if not sooner. 

The wiring instructions should include information about the title or escrow company, including the company’s name, address, and escrow account number. You should also receive the financial institution's name and routing number. 

Buyers should note that the routing number for a bank wire transfer is usually longer than most other routing numbers. Depending on the type of financial institution you’re transferring money to, you might receive an ABA (American Bankers Association) number instead of a routing number. 

Step 2: Review your closing disclosure

Once you’ve obtained wiring instructions, review your closing disclosure to confirm the exact amount of money you will need to transfer. Your closing disclosure will also tell you when you need to wire the money for closing. Buyers typically receive a closing disclosure from their lenders three days before the closing date. Ask your attorney or the title company when you should schedule the wire transfer to make sure it arrives on time. Wire transfers are usually completed within 24 hours. 

Step 3: Contact your bank

After you’ve received your closing disclosure and wiring instructions, the next step is to contact your bank or credit union to inform them about your transfer. Depending on your financial institution’s policies, you can either go to a branch in person, speak to a bank representative on the phone, or initiate the wire transfer online through your bank’s portal. 

It’s important to note that most banks won’t complete a large wire transfer without verbal or written consent from an authorized user on the account. These policies are in place to protect against fraud. Be sure to have your government-issued ID, social security number, and bank details readily available when contacting your financial institution about a wire transfer. 

Buyers should also know that some banks charge a fee for wiring money. Ask your bank representative about this when you contact them.

Step 4: Double check all wire transfer details before sending

Before sending your wire transfer, make sure all the information included in your wire transfer documents is correct. Carefully review the closing date, names of financial institutions, and bank account numbers. If there are any discrepancies, contact the title company or attorney responsible for the closing before sending your money anywhere.

Be particularly cautious of any emails or phone calls claiming to “update” wire instructions after they’ve already been given to you. Fraudsters often target buyers who are about to close and deceive them into wiring money to the wrong account. Always confirm any changes made in the transaction process with your title company before moving forward.

Step 5: Send the wire transfer

Once you’ve confirmed all wire transfer information is correct, confirm with the attorney or title company managing your transaction that you can wire the money. When you wire money, your financial institution will deduct the funds from your account and credit the recipient within the same day, or the next. Avoid scheduling your wire transfer on closing day, as it can take up to 24 hours for the transfer to complete. It’s best to schedule a wire transfer 1-2 days before closing to avoid delays. Also be mindful of how holidays and weekends might affect your transfer timeline.

Step 6: Check in with your bank afterwards

After scheduling a wire transfer, confirm with the title company or attorney that they have received the funds. You should receive a receipt of the wire confirming the amount and where it has been sent. The receipt should also include the Federal Reference number, a 16-20 digit number used to track the wire. Keep this receipt for your records and bring it with you on closing day. 

Final thoughts on wiring money for closing

When purchasing a home, it’s important to know how to securely transfer funds via wire. Scammers might pose as false title or escrow representatives in an attempt to get you to wire the funds to them instead of the correct escrow account. Once a wire transfer is complete, it’s very difficult to reverse the process. You can always ask your real estate agent questions at any point during the home-buying process to have a successful closing.

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