Paying closing costs: What kind of check do you need? (2025)

A personal check won't cut it

However, paying closing costs isn't as easy as simply writing out a check from your personal bank account, because the seller has no way of knowing your account can cover the amount. Cash would be impractical (can you imagine how long it would take to count out several thousand dollars?), and title and escrow companies won’t accept it anyway.

Instead, the method of payment needs to carry a little more weight — it must be a “guaranteed” form of payment that assures the payee that the check is good for all those thousands of dollars. Typically, you'll need to secure a cashier’s or certified check. It should only take a few minutes to have your bank draw one up for you, provided the funds are already in your account, but you'll want to do this a few days in advance of your closing date in case you run into any issues.

These 2 types of payment are similar but have a few key differences.

Paying closing costs with a cashier’s check

A cashier’s check is drawn on the issuing bank’s escrow account, so the funds are guaranteed by the bank. The funds are moved from your account (or handed over in cash) and placed in the bank’s escrow account. The bank then creates a check written out to the payee. When the check is paid out, the money is withdrawn from the bank’s account.

Paying closing costs with a certified check

A certified check is a payment for funds that have been verified as “good” by the bank. The bank also verifies that your signature as the payee is legitimate. The funds are set aside by the bank so they can be used to pay the certified check once it’s cashed. The bank will typically add its own stamp and signature to a certified check, along with conditions (like how long the check is good for).

The takeaway

Likely either a cashier's or certified check will be an acceptable for paying closing costs, since they're both guaranteed funds. Your closing officer or lender should provide you with specific instructions regarding what form of payment to bring to your loan closing, as well as the amount of money you owe.

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Paying closing costs: What kind of check do you need? (2025)

FAQs

Paying closing costs: What kind of check do you need? ›

Lenders will almost always require you to use a certified or cashier's check instead of a personal check to cover your closing costs (or a wire transfer).

Do I write a check for closing costs? ›

This money is known as your cash to close, and it's the total amount you'll need to bring to close on your mortgage loan. You can't simply write a personal check to cover these expenses. Instead, you'll need a cashier's check or money wire to pay your closing costs and other fees.

Which is better, wire transfer or cashier's check? ›

Lower cost: Cashier's checks tend to cost less than wire transfers, especially if you have an account that waives the standard fee. Secure: If you're concerned about the possibility of mixing up information on a wire transfer form or getting scammed, you can request and deliver a cashier's check entirely in person.

Can you bring a cashier's check to closing? ›

Likely either a cashier's or certified check will be an acceptable for paying closing costs, since they're both guaranteed funds. Your closing officer or lender should provide you with specific instructions regarding what form of payment to bring to your loan closing, as well as the amount of money you owe.

How does the buyer know how much money to bring to closing? ›

The exact amount you need, for both closing costs and your down payment, will be outlined in your Closing Disclosure, which is a document that you will receive at least three days before your closing.

Can I put closing costs on a credit card? ›

You can pay costs by credit card before closing, not at closing. And the fees must be customary, the types that homebuyers typically pay before closing. The closing cost you put on your credit card may not exceed 2% of the loan amount. For example, if your loan amount is $350,000, you could charge up to $7,000.

What is the difference between a certified check and a cashier's check? ›

Cashier's checks are signed by the financial institution rather than the customer, and the bank's account is used for the check. That often makes these checks generally considered "safer." By contrast, certified checks are signed by the account holder, and the signature is then certified by the bank teller.

What is the downside of cashier's check? ›

Downsides of Cashier's Checks

Risk of fraud is also high with cashier's checks, as counterfeit cashier's checks can be created by scammers. Last, cashier's checks are non-refundable. This means you may not be able to get a refund for the funds used to purchase them.

What is the maximum amount for a cashiers check? ›

Cashier's checks are typically used for larger purchases. Although the policy may change from bank to bank, generally there's no upper limit for a cashier's check. The payee typically has quicker access to a larger amount of the funds with a cashier's check.

Do I need to wire money before closing? ›

Wiring funds for closing is often required because it's a fast and secure method for sending and receiving large payments.

What is the alternative to a cashier's check? ›

What Is a Money Order? Similar to a cashier's check, a money order is a widely accepted alternative to cash or a personal check. To receive a money order, you would pay the face value of the amount, plus a transaction fee, normally in cash.

Can you get screwed on a cashier's check? ›

Complaints to the Department of Banking involving fraudulent cashier's checks have become more frequent in recent years. Scam artists rely on the fact that consumers generally place more trust in cashier's checks, especially if their bank accepts them for deposit.

How long does it take to receive payment after closing? ›

Most sellers can expect funds to reach their bank account within a few days of closing, but how quickly you get paid depends on the property's location and how funds are transferred. When you're ready to sell, your real estate agent can go over the process with you in greater detail.

What happens if the buyer doesn't have enough money at closing? ›

If you don't have the money to cover closing costs, you could get a no-closing-cost mortgage. This type of home loan doesn't eliminate closing costs. Instead, it rolls your closing costs into the loan principal, so you repay it over time with interest.

How much money should you have after closing? ›

Given all of these factors, most experts recommend having a minimum of 6-9 months' worth of living expenses after closing. Some advise having up to 20% of the home's value leftover in cash reserves, though this is not practical for every home buyer. Ultimately how much you need depends on your own financial situation.

Why do buyers ask for money back at closing? ›

The cash back to you helps offset closing costs or gives you extra money in your pocket. But it's important to discuss these specifics with your lender to understand where the cash to close to buyer amount comes from.

Do you write a check for a down payment on a house? ›

You must get a cashier's check made out for whatever final amount you owe at closing, including the down payment. This amount is generally at the bottom of the settlement statement and takes into account any earnest money or upfront closing costs you paid beforehand. You can't write a personal check for this amount!

Is it okay to ask seller to pay closing costs? ›

Saving money on closing costs

Buyers can ask for seller concessions, negotiating for the seller to pay some of their costs (often to cover the cost of necessary home repairs). They can also look for local or even federal assistance programs that can help with both down payments and closing costs.

Can I write a check to buy a house? ›

Common methods are to bring a cashier's check or to wire funds to a settlement agent. Your real estate agent or attorney can help determine the logistics.

Can personal checks be used at closing? ›

A cashier's check or wire transfer are really the only options for a safe and reliable closing transaction, says Steve Hill, lead mortgage broker at SBC Lending in Southern California. "Most escrow companies won't accept a personal check due to fraud," Hill says.

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