The wiring instructions will include all of the title or escrow company’s information - the financial institution’s name, an account number, and a routing number or ABA number (American Bankers Association). Some banks require in-person requests for large sums like those involved in a real estate closing, and they might charge a fee of up to $75 for wiring money, so don’t be surprised. Starting the process for a wire transfer can be done through your bank’s online portal, if available, or you may have to visit a branch to request the wire transfer in person. Wiring money, or sometimes referred to as wiring funds, is just about gathering some key information from the recipient and reaching out to your bank. What do you need to start a wire transfer? A reputable bank verifies a new account holder’s identity when they open an account, thus adding an extra layer of protection for you when sending money to someone new. It’s considered safer because both parties involved in the transaction are typically required to be account holders at their respective financial institutions. The option to wire money has grown in popularity for its security and ease of use. Cash to close includes much more - all of your closing costs, down payment, and EMD credit. Unlike the down payment paid at the closing of escrow, the EMD money will be credited towards your down payment later in the process. An EMD is just a fancy name for a deposit you put down to show a seller that you intend to buy the home and won’t renege on the deal - typically 1% - 3% of the total purchase price. The two points in the home buying process at which you’ll need to send large sums of money are the Earnest Money Deposit or EMD payment and Cash to Close payment. The SWIFT (Society for Worldwide Interbank Financial Telecommunication) network or Fedwire network is typically used for wiring money, allowing for both international and domestic transfers to occur. It’s a speedy way to send money as the money will likely be available within the same or next day for immediate use. What is a wire transfer?Ī wire transfer - sometimes referred to as a bank transfer, credit transfer, or EFT - is an electronic transfer of money from one bank or credit union to another (although it can be within the same bank). Before you dive into sending a large sum of money, it’s essential to review the steps of how to wire money so that you know your money ends up in the right hands. While it might seem intimidating to send large sums of money in this manner, learning how to wire money is quite simple and trusted by over half a million people, and growing every day. After all, checks can bounce, and who really trusts a briefcase full of cash? Long gone are the days where closing a sale involves a briefcase full of money or a handwritten check. In today’s fast-moving market, the best way to move through a deal quickly is by wiring the money electronically. When it’s finally time to close, you’ll need to be prepared to send your Cash to Close payment and officially seal the deal. It’s the culmination of all the effort put into comparing options, making offers, scheduling the inspection, securing financing, and taking the risk with an Earnest Money Deposit. There are few greater feelings than being able to purchase the home of your dreams.
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