Wiring Your Down Payment Safely: What to Know Before Closing

You're almost there. Wiring your down payment is the final financial step before closing.

You'll actually be sending the escrow company the remainder of your down payment: your full down payment minus the Earnest Money Deposit you made at the beginning of escrow, plus any closing costs you're responsible for.

This is one of the most important and riskiest steps in the home-buying process, because wire fraud is a real threat. If you send funds to the wrong place, they may be impossible to recover.

When and Where to Wire Your Funds

Your escrow company will tell you exactly when and how to send your remaining down payment.

• When? Usually 1 to 2 days before closing, but always confirm with escrow.
• Where? The funds go directly to the escrow company handling the transaction. Nowhere else.

Security First: Preventing Wire Fraud

Wire fraud is a major concern in real estate. Scammers often hack email accounts and send fake wiring instructions to trick buyers into transferring funds to fraudulent accounts. Once funds are sent to the wrong place, they're often impossible to recover.

How to stay safe:

Wait for new wiring instructions from escrow. Only trust wiring instructions sent by escrow after your loan documents are signed. Never use old instructions from a previous email thread.

Always verify by phone. Call your escrow officer using the number listed on their official website or one you've already confirmed in person. Don't trust phone numbers from emails; they could be spoofed.

Be suspicious of last-minute changes. If you receive unexpected new instructions, stop and contact escrow immediately. This is a red flag.

Use a secure network. Don't use public Wi-Fi when reviewing wiring instructions or making the transfer.

Confirm with your bank. Double-check that the recipient's name exactly matches the escrow company before completing the wire.

How Much to Wire

Your escrow officer will give you an exact amount, which includes:

• Remaining down payment. The part of your home's purchase price not covered by your loan.
• Closing costs. This includes escrow fees, title insurance, lender fees, and prepaid property taxes.

What Happens After You Wire the Funds?

1. Your bank processes the wire. This can take a few hours to a full business day, depending on timing and bank policies.
2. Escrow confirms receipt. Don't assume. Call your escrow officer to make sure the funds were received.
3. Final closing prep begins. Escrow will prepare final documents for closing once your payment is confirmed.

What If Something Goes Wrong?

If you think you sent money to the wrong place:

• Call your bank immediately and request a wire recall.
• Contact your escrow officer to check whether they received the funds.
• File a report with the FBI's Internet Crime Complaint Center at ic3.gov.

Act fast. Some wires can be recovered, but timing is everything.

Your Takeaway

Wiring your down payment is one of the final steps before closing, and security is everything. Always verify instructions directly with escrow, be cautious of any unexpected changes, and follow up to confirm your funds arrive safely.

Ready to close on your dream home in Orange County or Long Beach? I'm David Mercier. Let's get you there safely. Contact me today.