How Many Checks Do I Need at Closing, and Who Gets Them?

Most people are aware that they are going to need to pay closing costs, but it isn’t always clear what those costs are, what is paid upfront, and what is paid on the day of closing when you take over your new home. 

You need to be prepared for these costs, and your real estate agent can give you an estimate. Your actual closing costs, checks required, and other details may not be released to you until just a few days before closing. Here’s what you need to know to be prepared.

If you don’t use a closing agent, you’re going to need at least two checks.

The first check you’re going to need is the required down payment, made out to your lender. Your lender will give a check to the seller, although not necessarily in the same amount. The second check will go to the real estate agent for closing costs and fees that haven’t yet been paid, such as title insurance and appraisals.

If you use a closing agent, you may be able to take only one check to closing day. The closing agent will distribute the funds to the seller, agents, lenders, and other parties required by the contracts.

You don’t have long to gather funds.

You need to get an estimate from your lender and/or closing agent so that you have an idea of what funds you’ll need on closing day. Sometimes these amounts are provided until just a few days before the closing of the sale. 

Florida law requires that buyers be notified of the closing cost amounts, payment methods, and payees at least three days before closing. Most contracts allow you to bring a cashier’s check for the appropriate amount, but many closing agents prefer wireless transfers these days. We offer flexible payment options.

If you are buying a home directly from a seller without a real estate agent, you’re going to need a closing agent to make sure all of the important steps are taken accordingly. If you need such assistance, contact us today for a consultation.