How to Pay Closing Costs on a House: Cashier’s Check or Wire

You pay closing costs on a house with a cashier’s check or a wire transfer, made out for the exact “Cash to Close” figure on the Closing Disclosure your lender is required to send you at least three business days before signing.1eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions Personal checks and physical cash are not accepted at nearly any closing. The rest is logistics: confirming the amount, moving the money into an account you can draw from immediately, and protecting a wire transfer from fraud.

Confirm the Exact Amount You Owe

Your Closing Disclosure is the document that tells you what to pay. Federal rules under 12 C.F.R. § 1026.19 require your lender to deliver it at least three business days before your scheduled closing, and if it’s mailed rather than handed to you, the lender must add another three days for delivery.1eCFR. 12 CFR 1026.19 – Certain Mortgage and Variable-Rate Transactions The figure you’re looking for is labeled “Cash to Close.”

Compare that number to the Loan Estimate you received when you first applied. If anything has moved, ask your lender to walk you through each change before closing day.2Consumer Financial Protection Bureau. Closing Disclosure Explainer The most common last-minute shifts are property tax prorations, which split the annual bill between you and the seller based on how many days each of you owns the home that year, and per-diem interest, which changes with the exact closing date.

Total in hand, get the money into a checking or savings account you can draw from immediately. Transfers from brokerage or investment accounts can take several business days to settle, and neither a cashier’s check nor a wire can be issued from money that isn’t fully available. Give yourself several days of cushion.

Cashier’s Check

A cashier’s check is issued by your bank against its own funds after debiting your account, which is why title and escrow companies treat it as guaranteed money. To get one, go to a branch in person, give the teller the exact dollar amount and the payee’s name (usually the title or escrow company), and they’ll print it while you wait.

Verify the payee name with your closing agent before you go. A misspelled or wrong payee can cause the check to be rejected at the signing table, and correcting it means another trip to the bank while everyone waits.

Wire Transfer

A wire transfer moves money electronically from your bank straight into the title or escrow company’s account. You’ll need the receiving bank’s routing number, the account number, and the name on the account. Your closing agent provides those details.

Domestic wires typically cost around $25 to $30. Because a wire can take several hours to settle, many closing agents ask buyers to send funds the business day before closing so the money is confirmed in escrow by the morning of the signing. Ask your closing agent what timing they prefer.

Certified Checks and What Won’t Be Accepted

A certified check is a personal check your bank has verified and stamped, confirming the funds sit in your account. It still draws from your account rather than the bank’s, which is the distinction from a cashier’s check. Some closing agents accept certified checks and some don’t, so confirm with your title company in advance whether it satisfies your state’s requirements.

Personal checks are rejected almost everywhere because they take days to clear, and the deed can’t be recorded until funds settle. Physical cash isn’t accepted either. Most states have “good funds” laws that require title and escrow companies to take only guaranteed funds, and federal anti-money laundering regulations make large cash real estate transactions impractical.3Financial Crimes Enforcement Network. Residential Real Estate Frequently Asked Questions4Federal Register. Anti-Money Laundering Regulations for Residential Real Estate Transfers Arriving with an unapproved payment can delay closing or, at worst, put the purchase agreement in jeopardy.

Protect Your Wire From Fraud

Real estate wire fraud is the single biggest thing that goes wrong at this stage. Criminals compromise email accounts belonging to real estate agents, lenders, or title companies and send buyers convincing but fraudulent wire instructions. The FBI’s Internet Crime Complaint Center reported over $173 million in losses from real estate fraud in 2024.5Federal Bureau of Investigation (FBI). 2024 IC3 Annual Report Once money leaves your account for a fraudulent one, getting it back is very difficult.

The Consumer Financial Protection Bureau recommends a few habits that head this off:6Consumer Financial Protection Bureau. Mortgage Closing Scams – How to Protect Yourself and Your Closing Funds

  • Verify wire instructions by phone before you send anything, using a number you got early in the process or looked up yourself. Don’t use the number in the email.
  • Don’t click links or open attachments in an email about wire transfers without confirming with your trusted contact first.
  • Agree on a code phrase with your real estate agent and closing agent early on so you can verify identities over the phone.
  • Don’t send bank account numbers, routing numbers, or other financial details by email.

If you think you’ve sent money to a fraudulent account, call your bank immediately to try a recall, then file a complaint at ic3.gov.

What Happens at the Closing Table

On the day itself, funds and signatures come together. If you’re paying by cashier’s check, hand it to the closing agent at the start of the meeting. The agent checks the amount against your Closing Disclosure before starting the paperwork.

If you wired funds ahead, the closing agent confirms the money has landed in the escrow account before signing begins. Once the balance is verified, you’ll sign the mortgage note, the deed of trust, and various disclosure forms. Afterward, the agent distributes the money: the seller receives their proceeds, the lender’s fees are paid, and the deed goes to the county recorder’s office.

If the Final Amount Changes

A final walkthrough sometimes turns up issues, like a broken appliance the seller agreed to leave in working order, and the Cash to Close figure gets adjusted at the last minute. If it changes after you’ve already gotten a cashier’s check or sent a wire, the closing agent usually handles the difference. A small overpayment is refunded to you after closing. A shortfall might require an additional cashier’s check or a same-day wire for the balance, which can slow things down. Keeping a small cushion in your checking account is the easiest way to avoid the delay.

Bring Less Cash to the Table

You don’t necessarily have to cover every closing cost out of savings. Three approaches can reduce what you owe on closing day.

Seller Concessions

In many purchases, the seller agrees to pay some of the buyer’s closing costs as part of the negotiation. Loan programs cap how much a seller can contribute:

Lender Credits

A lender credit is a trade. You accept a slightly higher interest rate, and in return the lender gives you a cash credit at closing that offsets some of your fees. The credit appears as a line item on the Closing Disclosure and reduces your Cash to Close directly. It works best if you plan to sell or refinance within a few years, because the higher rate has less time to cost you extra interest. Hold the loan longer, and the extra interest usually outweighs the upfront savings.

Rolling Closing Costs Into the Loan

Some lenders offer “no-closing-cost” mortgages that add the closing fees to your loan balance instead of collecting them upfront. You then finance those costs over the life of the loan and pay interest on them, which raises both your monthly payment and your total interest. Not every program allows it. FHA streamline refinances, for example, don’t. Ask your lender whether it’s available for your loan type and weigh the long-term cost against keeping more cash on hand today.