There’s a lot of confusion these days on how to get your required funds to escrow, and what form of funds they will require. Here’s a quick guide to help make your transaction flow without any issues.
Initial Deposit on Sales Contracts:
These funds can be in the form of a personal check. They must come from an account you are prepared to provide two months of bank statements to your lender. The initial deposit cannot be in the form of cash. It cannot come from a check drawn on the account of your real estate agent or anyone else. Cashier’s Checks and funds wired from your personal accounts are acceptable.
Additional Deposits to Escrow:
If you have sufficient time till your closing date, a personal check will be accepted. Escrow companies will place a hold on these funds until they clear your bank. It is best to either walk in a cashier’s check, or wire the funds directly to escrow. The last thing you want to have happen is delay your closing because your funds are on hold waiting to clear the bank.
Final Closing Funds:
The only choices you have are to either wire your funds from your bank directly to escrow, or provide a cashier’s check. The cashier’s check has to be from a local bank. They will not accept mainland issued cashier’s checks or personal checks.
As a reminder, all funds have to come from accounts whose statements you provided to your lender. You can never use funds that are not documented. And last – never cash. Never ever!