How to Pay Closing Costs and Down Payment on New Home

[southerndoc]

I'm in the process of buying a new home and will close on 12/30.

Do most people pay by direct wire or certified check?

I'm trying to figure out which is preferred. I haven't received instructions from the closing attorney yet (still have time), but do I make the down payment out to the seller, my lender, or the closing attorney? And the closing costs, to one person or to each representative directly (title search company, etc.)?

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[MCAT guy]

I'm in the process of buying a new home and will close on 12/30.

Do most people pay by direct wire or certified check?

I'm trying to figure out which is preferred. I haven't received instructions from the closing attorney yet (still have time), but do I make the down payment out to the seller, my lender, or the closing attorney? And the closing costs, to one person or to each representative directly (title search company, etc.)?

Pretty sure you need a certified check, and probably the check will go to the title company (closing attorney). The entire cost will be one check though, and the people handling your closing should be in charge of ensuring that all funds are there. That is their job.

Direct all questions to your closing attorney or title company. Your lender should also know.

 

[Vyvanase]

Use whatever is cheaper in fees. I used a cashiers check and paid no fees from my old wamu free checking account.

 

[Hiett]

If you don't have enough cash to pay the closing costs, you can often get the closing costs added to the amount of the loan. For example, if the loan amount is for $150,000, and the closing costs are $4500, you'd add the closing costs to the loan amount so you'd actually be borrowing $154,500 total. This is handy if you're short on cash after making your down payment.

 

[RabbMD]

Ive picked up cashiers checks from a boa branch right before afternoon closings for all three of my closings in two different states. Boa gave them to me free, and that way if there was anything fishey in wording the closing docs or any bad math or extra fees, could just take my money and walk away. As a fellow boglehead im sure you will read all that verbiage that everyone else just passes over before signing.

 

[touchadream]

Check or wire will work. The statement that matters most to you is the "settlement" statement. Also, closely read the truth in lending disclosure, where it will clearly tell you there is no truth in lending! It is highly entertaining to try to get a mortgage closer to explain to you why the deed of trust says you are paying 3.65% interest, when in fact you are paying 3.78% per annum. Basically the documents are a note (what you owe and when), a deed of trust (this document seals the note to the property and is recorded so you can never sell the home without paying off the mortgage), a deed (usually there is a policy of title insurance, but beware that the title insurance protects, guess who? the bank or mortgage lender, not YOU, so you could get bad title and still have to pay them the note--strongly urge you to get your own policy of title insurance). The cost of a cashiers check vs. a wire pales in comparison to the larger issues...the last mortgage I did was a nightmare of paperwork and no instructions, a notary sent to our home at night who knew nothing about what we were signing, but the rate was good. Always check on bankrate.com to compare mtge rates. Best of luck.