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We are getting ready to close on our house at the end of the week, and I'm confused as to how we bring money to closing. Our loan officer says we need to wire the money to escrow, but he can't give us a final amount. He says "$4000 should cover it". From what I read on the internet, the money needs to be wired a day before closing.
Call me crazy, but I'm not thrilled about sending $4000 to someone because it will for sure cover the costs. I'd like an exact number before I wire anyone any money. Is this so wrong?
And is this sort of thing common? Am I being unreasonable for wanting to know the exact amount to transfer before I send any money? This is our first time buying a house, and I don't know how it's supposed to be done. Sometimes I suspect that our loan officer is kind of flaky, but maybe this is how things go for everyone. Is it?
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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If you overpay, the closing agent will cut you a check for the amount of overpayment. If you underpay, the transaction will not close on time and all the pro-rations will have to be recalculated.
Wiring in the money is certainly not unheard of, but most people just bring a cashier's check to closing based on a best estimate if the final figures aren't available the day before. If you owe a little more, you write a check. If you owe a little less, the closing agent writes you a refund check.
I don't think a wire the day before is necessary, but closing practices vary from location to location.
We are getting ready to close on our house at the end of the week, and I'm confused as to how we bring money to closing. Our loan officer says we need to wire the money to escrow, but he can't give us a final amount. He says "$4000 should cover it". From what I read on the internet, the money needs to be wired a day before closing.
I don't find this strange at all. The loan officer gave you an estimate several days before the closing so that you can get prepared. He didn't say you must wire $4,000. What he means is you should have at least $4,000 in your bank account to wire or cut a cashier's check.
Your closing agent should give you the final closing cost the day before closing. They don't know the exact figure yet.
I'd wait and just get a cashiers check for the exact amount the day of closing.
And make it out to yourself. If things go well, you just endorse it over to the closing agent. If something goes wrong, it makes it a little easier to deposit it back in your account.
The title company/closer should give you an exact amount. They should also give you "Wire Transfer" instructions. Ask for them if they haven't.
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