If you’re wondering how you’re going to pay your closing costs without a checkbook, you’ll be relieved to know that you can’t pay closing costs with a personal check anyway. You actually don’t have a lot of options for paying for your closing costs. Here’s what you need to know and the best method to use.
In years gone by, a cashier’s check was the preferred method of paying closing costs. A cashier’s check is issued and guaranteed by your bank or other financial institution, which is why most closing and real estate agents have preferred it in the past. It seemed like the safest, most guaranteed option to get their money without receiving cash.
However, today there are many ways that people are able to create fraudulent cashier’s checks. This is making most closing real estate agents wary of taking even cashier’s checks and money orders; though they’re guaranteed, they take longer to liquidate.
The vast majority of real estate transactions today are paid digitally. Is it any surprise that lenders, banks, closing agents, and real estate agents would want their payment the same way you send your friends and family money? You yourself, if you are employed or self-employed, probably get paid digitally.
Wire transfers are immediate, and they can be seen in an account right away. This way the money has completely changed hands at time of closing, rather than having to get banks involved in cashing and distributing the funds.
If you would like to work with a closing agent that has embraced the technology and ease of wire transfer for closing costs, contact me today for more information.