First-Time Buyers - Closing Funds Requirements Differ in Every State

First-Time Buyers -
Closing Funds Requirements Differ in Every State

First-Time Buyers need to understand that Funds for Closing (also called Settlement in some states)  are strictly regulated. Closing Funds Requirements Differ in Every State. All the professionals involved in the transaction - Agents, Mortgage Lenders and Attorneys - must remind the Buyers several times before the transfer of Ownership that Closing Funds Requirements Differ in Every State.

You will enjoy reading the Blog Post entitled Can I Write A Personal Check at Closing? by Joan Cox from Colorado. Joan's topic elicited answers from all across the country and, perhaps, even from Canada!

The key point to remember about Closing Funds Requirements is a very simple one. Everyone wants the sale to happen!!!

Every person involved in the transfer of Title from one party to another wants the transaction to flow smoothly. A key factor for success and timeliness at a Closing is having the funds in place.

At Atlanta Homes ODAT Realty,   we suggest that our Buyers add about $500 more to the wire for the amount of funds sufficient for the purchase. The Closing Attorney, Shafritz & Dean, LLC with six offices located all around Atlanta, will refund any extra money at the Closing table. The check may be cashed or deposited immediately after Closing. WHY????

Everyone with more than one month's experience in real estate knows that the HUD-1 form often changes right there at the Closing table. We ask for the extra money to be included so that if anything is incorrect on the HUD-1, adjusting will be simple - no conflicts with Closing Funds Requirements.

For example, there may be one day's difference in the Pro-rated tax amounts that must be adjusted. The amounts are generally small and having the funds at hand - from a wire - makes the Closing progress more smoothly.

Wire transfers of money are an excellent vehicle for surety. Once the money moves in a wire --- WOOOSH!!! - it is deposited in the new location. NO BACKSIES!!!!

(Often Incidentals may be paid by personal check to a certain limit.) Image courtesy of Invent2HelpAll.

Agents, Mortgage Lenders and Attorneys will tell the First-Time Buyers the regulations in their state. Often even folks who have purchased homes previously will need reminding from all their support people.

Here are questions about Closing Funds Requirements to ask at least a week or two before Closing:
1.  What method of funds transfer for my purchase is required in my state (or province) for my Closing (also called Settlement in some states) ?

2.  What amount is the limit for paying unexpected incidentals with a personal check at Closing in my state (or province) ?

Be prepared! You cannot use cash in most areas. Add a little extra money to your wire so you don't encounter any last minute obstacles due to Closing Funds Requirements.

Know any other last minute questions left off the list above? Please add them to your comments below.

Thanks -
Have a happy day -
Lynn