An EFT transfer moves money electronically from your bank account to another account on the same day or next business day

An EFT (Electronic Funds Transfer) is a direct electronic movement of money from one bank account to another. When you're buying a home, your lender or title company will ask you to send the down payment, closing costs, or final funds via EFT rather than a check or wire. The money leaves your account electronically and arrives in theirs through the banking system — no physical check, no courier, no delay.

EFT is different from a wire transfer in one key way: timing and cost. A wire transfer moves money the same day it's sent, but costs money (usually $15 to $30). An EFT typically takes one to two business days and is free or costs only a few dollars. For closing day, when you need funds to arrive by a specific time, your lender will usually ask for a wire. For preliminary deposits or inspections, they'll often accept an EFT.

The process itself is simple: you log into your bank's website or app, enter the receiving account number and routing number, and authorize the transfer. Your bank then sends the instruction through the ACH (Automated Clearing House) network, which is the backbone of most consumer EFTs in the United States.

Key Takeaways

  • EFT transfers are free or low-cost and take one to two business days, making them useful for down payment deposits or inspections but not for same-day closing funds.
  • You will need the receiving bank's routing number and account number, which your lender or title company will provide in writing.
  • Never send money to an account number or routing number you found yourself — always use the numbers the title company or lender gives you in an official document.
  • If the transfer fails or is delayed, contact your bank immediately; most issues resolve within one business day.

When your lender asks for an EFT instead of a wire

Your lender or title company will specify which payment method they want for each stage of the purchase. For the earnest money deposit (the money you put down to show you're serious), they almost always accept EFT because there's no time pressure — you have days or weeks before closing. For the final closing funds, they usually require a wire because the money must arrive the same day the deed is recorded.

Some lenders will accept an EFT for closing if you send it the day before, giving the bank time to process it overnight. Ask your closing attorney or title company whether this is an option; if it is, you save the wire fee. If closing is on a Friday and you send an EFT on Thursday, the money may not arrive until Monday, which is too late — so timing matters.

Inspections, appraisals, and other third-party services sometimes ask you to pay them directly via EFT. These are low-stakes transfers with no deadline, so EFT is standard.

How to send an EFT transfer safely

Your lender or title company will send you written instructions with the receiving bank's name, routing number, and account number. Do not call the company and ask for these numbers — use only the numbers in the official email or document they sent you. Fraud happens when someone intercepts your email and sends you fake instructions with a different account number.

Log into your own bank's website or mobile app and look for "Send Money," "Transfer Funds," or "Pay Bills." Select the option to transfer to another bank (not a transfer between your own accounts). Enter the routing number and account number exactly as written — one digit wrong and the money goes to the wrong place. Enter the amount and a description like "Earnest money deposit" or "Closing funds." Review everything before you hit send.

Most banks show you a confirmation screen with all the details. Take a screenshot or write down the confirmation number. You'll need it if there's a problem. The transfer will show a status of "pending" for one to two business days, then "complete" once the receiving bank accepts it.

What happens if the transfer fails or is delayed

If your bank rejects the transfer, you'll see an error message with a reason — usually "invalid routing number" or "account number mismatch." Double-check the numbers against the official instructions and try again. If the numbers are correct and the transfer still fails, call your bank's customer service line. They can tell you whether the receiving bank's routing number is valid and whether there's a block on the transfer.

If the transfer is pending longer than two business days, contact your bank first. Ask them to check the status in the ACH network. If they say it's stuck, they can sometimes push it through or cancel it so you can try again. Then notify your lender or title company that there's a delay — they may need to adjust the closing timeline or ask you to wire the funds instead.

Weekends and holidays slow down ACH transfers. If you send an EFT on Friday afternoon, it may not clear until Tuesday. Plan ahead and send transfers early in the week when possible.

EFT versus wire transfer for home closings

The choice between EFT and wire usually isn't yours — your lender decides based on timing. For closing day itself, wire is standard because it's same-day and banks treat it as final. An EFT that arrives the next day is too risky; the closing could be delayed or the deal could fall through.

For everything else — earnest money, inspection fees, appraisal fees, preliminary deposits — EFT is fine and saves you money. A wire costs $15 to $30 per transfer. Over the course of a purchase, you might send three to five transfers. Using EFT for the ones that don't have a same-day deadline can save $50 to $100.

Some title companies now offer ACH transfers for closing funds if you send the money the day before. This is becoming more common as banks improve their overnight processing. Ask your closing attorney whether this is an option in your state.

Protecting yourself from EFT fraud

Real estate closing fraud often starts with a fake email that looks like it came from your lender or title company. The email contains instructions to send money to a different account — one controlled by the scammer. By the time you realize the mistake, the money is gone and very hard to recover.

Protect yourself by calling your lender or title company directly using the phone number on their official website — not a number in the email. Say, "I received instructions to send an EFT transfer. Can you confirm the routing number and account number?" They will either confirm the numbers or tell you the email was fake.

Never send money based on an email alone, no matter how official it looks. Always verify by phone using a number you find yourself.

Frequently Asked Questions

How long does an EFT transfer take?

One to two business days is standard. If you send it on a Monday, it usually arrives by Wednesday. Transfers sent on Friday or over a weekend may not arrive until Tuesday or Wednesday of the following week. Your bank can tell you the exact expected arrival date when you initiate the transfer.

Can I cancel an EFT transfer after I send it?

Yes, but only if you act quickly — usually within a few hours of sending it, before the receiving bank accepts it. Log into your bank's app or call customer service and ask to recall the transfer. Once the receiving bank accepts it, you cannot cancel it; you would have to ask them to return the money, which they may refuse to do.

What if I enter the wrong account number?

The money will go to whatever account matches that number at the receiving bank. If the account doesn't exist, the transfer will bounce back to you in one to two business days. If the account exists but belongs to someone else, you'll have to contact that bank and ask them to return the funds — they are not required to do so. Always verify the account number before sending.

Is EFT safe for large amounts?

EFT is as safe as any electronic transfer, but the risk is human error or fraud, not the system itself. The ACH network is secure. The danger is sending money to the wrong account or to a scammer posing as your lender. Verify the receiving account by phone before you send anything.

Do I need to tell my lender when I send an EFT?

Yes. Send them an email with the confirmation number and the date and time you sent the transfer. This creates a record that you sent the funds on time. They will watch for it to arrive and confirm receipt. If there's a delay, they'll already know you sent it and won't assume you forgot.