A wire transfer is the electronic movement of funds often used to deliver closing money or pay off an existing mortgage.
A wire transfer is the electronic movement of funds often used to deliver closing money or pay off an existing mortgage.
Wire transfer matters because mortgage closings often involve large sums that need to move precisely and on time. A delayed or misdirected transfer can disrupt the entire closing.
It also matters because borrowers tend to think only about the amount due, not the delivery method. In practice, the mechanics of sending the money can be just as important as the figure itself.
Borrowers usually encounter wire-transfer issues in the final days before closing, when the exact Cash to Close and funding instructions are being confirmed.
The term also matters in refinances and payoffs, where money may need to be transmitted precisely to satisfy an existing loan balance by a target date.
A borrower is instructed to wire the closing funds to the title company the day before signing. That fund-delivery step is the wire transfer portion of closing.
Wire transfer differs from Cash to Close because cash to close is the amount due, while wire transfer is one method of delivering that money.
It also differs from Payoff Statement. The payoff statement tells you how much is needed to satisfy the old loan, while a wire transfer may be the mechanism used to send those funds.