Now that we’re getting closer to your closing date, it’s time to get your down payment ready. At this point you should have already liquidated any assets needed and consolidated all of the cash needed into one account. The cash you have available should cover your down payment, closing costs, and a little extra. Your closing costs should equal approximately 2-3% of the purchase price on top of the down payment. In addition, your mortgage lender will also ask you to transfer extra money, usually $1,500-$2,000 on top of the estimate, just in case there are any surprises found at closing in regards to the estimates which happens frequently. At closing, any overage you paid will be refunded back to you the next day at the very end of the closing via a check. If any funds are going to be gifted to you from a family member, you need to let your mortgage lender know right away so they can get approval from the underwriter. This account must be disclosed to your mortgage lender, so that they can track the funds.
Wire Transfer Instructions
Amounts under $50,000 can be paid for with a cashier’s check, however, amounts over $50,000 must be wire transferred. If you think you will be wire transferring your funds, make sure you have a clear understanding of your bank’s wire transfer procedures. Typically, you have to go into the bank personally to initiate the wire transfer. You should find out how long it takes to complete and what the cut off time is for wire transfers. Wire transfer cut off times are not the same as bank hours and are usually a few hours prior to their closing time. You will need to make sure that you schedule to take time off (a long lunch break) the day before closing to make your wire transfer. Once you’ve done the wire transfer, email me and mortgage lender so we can make sure the title company received the funds. If you miss the cut off time and the funds do not get into the title company’s account the next day, your closing will be delayed.