Get Your Down Payment ready!
Now that we’re getting closer to your closing date, it’s time to get your down payment ready! Remember that in addition to the down payment you need approximately 3% of the purchase price on top of the down payment available in cash for the closing costs.
If any of these funds are going to be gifted to you from a family member, you need to let your mortgage lender know right away so he or she can get approval from the underwriter for the funds.
If escrow is unable to give you the exact amount due by the end of the day, an estimate will be provided by your lender.
How Much Do You Need to Bring in?
While it would be nice to wire transfer the funds several days in advance, often the title company doesn’t have the exact figures until the day before. Therefore, call your bank now and find out what you need to do to make a wire transfer. Most of the time you have to go into the bank personally to initiate the wire transfer. Also, find out what their cut-off time is for wire transfers. Usually, it’s around 4 pm. That means you’ll have to do the wire transfer by that time the day before closing in order for it to go into the title company’s account on time. Once you’ve done the wire transfer, email me as well as your attorney and mortgage lender so we can make sure the title company received the funds.
At closing, any overage/extra money you paid will be refunded back to you at the very end of the closing via a check.
PLEASE NOTE: There have been a number of hackers and scammers lately trying to divert (ie. steal) closing funds to their personal accounts and away from the title companies. Generally, the wire transfer instructions will be emailed to you from escrow, however, occasionally they will be sent to you from your attorney.
DO NOT FOLLOW WIRE TRANSFER INSTRUCTIONS SENT FROM ANYONE ELSE.
If you want to verify that the wire transfer instructions you received are legit, call the title company and they can verify them with you via phone.