Why Can't I Bring a Check to Closing?

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

Buyer:  We are close to closing, and trying to plan for the big day.  Let us know how much we will need at closing, so we can write a check.

How do I pay for my Home at Closing

 

This is an exciting day, and within a week, you will own a home!     Per the contract at closing, funds must be in the form of  "Good Funds".   A personal check is not considered good funds, as it would need to clear before the closing will be funded.   We fund at the table, and at the end of the closing, you will get the keys to your new home.   

 

Your funds will need to be in the form of a Cashier's Check or a wire transfer.     I will check with the specified title company and see what their requirement will be, and most likely you will get a cashier's check made payable to the title company.    Some may require a wire, depending on the total amount you need to bring to closing, and cash transactions are almost always required to have a wire transfer.     I have had VA buyers with a small amount due at closing, and title companies have required a cashiers check even with a small amount!  

 

Some title companies have required ONLY wires, as some buyers have purchased a cashier's check made payable to themselves, taken a copy and re-deposited it, then brought it to closing, and there were no funds to fund the transaction.   

 

Side note:   You were able to write a check for the earnest money, but the title company knows there will be 4-5 weeks prior to closing, and a check takes up to two weeks to clear.   If the check does not clear, more than likely the transaction will not go forward to closing.  

 

Congratulations, at the end of the closing - the home is YOURS!

 

 

Posted by

Joan Cox
Broker/Owner, REALTOR®
House to Home, Inc.

Serving the Denver Metro area including all suburbs


Helping Buyers and Sellers achieve their real estate dreams, one house at a time!

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Comments (44)

Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 570-801-5525

Ah, yes, Joan, the education of buyers regarding checks has some twists and turns - deposit checks, inspection check, closing checks, then there's that payment to seller for personal effects, sometimes.

Jan 20, 2022 08:26 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Hi Joan Cox ,

Each Title company is a little different in how they want to handle funds. Many are now using apps for a buyer to deposit earnest money so not a check for earnest money and never for closing day will a check be allowed unless there is a difference in final numbers they will take a check if its $1,500 or less.

Jan 21, 2022 07:23 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Paul S. Henderson, REALTOR®, CRS OH MY, that would be back to see the FBI in your office.   Have not heard of major wire frauds here, thankfully.

Jan 21, 2022 07:31 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thanks Hannah!

Jan 21, 2022 07:32 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kris Collis, Associate Broker we don't have inspection checks, so many things differ from state to state.

Jan 21, 2022 07:32 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dorie, that would be interesting having an app for closing!    On occasion when the amount is below $500 they are allowed a check, and some won't allow it.

Jan 21, 2022 07:33 AM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

This is so good.  Thanks

Jan 21, 2022 09:03 AM
David M. Dwares
Title Professionals Corp. - Fort Lauderdale, FL
Title guy with a broker license

There is a "new" procedure to transferring funds called Real Time Payment (RTP) which is supposed to be instant and safer than wires.  If it really can deliver what I have read about it so far, I can see it being adopted as the "go to" way for buyers to pay at closing.

Jan 21, 2022 09:06 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thank you Ginger Harper !

Jan 21, 2022 09:17 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

David M. Dwares thanks for the heads up, have not heard of it, but will inquire with my title company.

Jan 21, 2022 09:18 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

A personal check would never be allowed as it could be cancelled by the buyers as they are walking away from the closing

Jan 21, 2022 02:06 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Exactly Ed!

Jan 21, 2022 03:36 PM
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Hi Joan Cox a few years ago a buyer was paying cash on one of my listings.  They wanted to bring the actual cash ($415,000) to the title company.  They owned a marijuana dispensary in the area and had lots of cash but at that time most banks wouldn't take it due to federal laws.  I don't remember how they actually worked it out but they did end up bringing in a cashiers check.

Jan 22, 2022 11:22 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jim Patton that is a problem when you have a cash-based business.   I think recently Colorado allowed pot shop owners to open bank accounts.   It is safer than having so much cash in the shop.

Jan 23, 2022 07:26 AM
Gwen Fowler-864-710-4518 SC * Mountain* Lake*Home
Gwen Fowler Real Estate, Inc - Walhalla, SC
Gwen Fowler Real Estate, Inc.

Great post and comments.  Thank you

Jan 24, 2022 05:51 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thank you Gwen.

Jan 24, 2022 07:29 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Great post Joan!  Just spoke with a title company about the cashier's check not funding.  Who would ever think that?!  

Jan 24, 2022 04:59 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jan Green as far as I know my title company has not had issues with cashier's check, but sure it will happen.   Too many crooks out there.

Jan 25, 2022 06:38 AM
Ben DeHaven
Haven Realty & Investments - Winter Haven, FL
Proudly serving Winter Haven & Lakeland, Florida

One of my first transactions was a guy that wanted to buy a mobile home on land with cash. Actual cash. He did not even have a bank account. 

Apr 05, 2022 06:09 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ben DeHaven did they accept cash?   I don't think our title companies will, should check into that.

Apr 05, 2022 06:39 AM