What happens when you wire money for a real estate transaction
When you wire funds for a home purchase, you are sending money directly from your bank account to an escrow account or title company account — not to the seller or their agent. The receiving bank holds that money until closing, when the title company confirms all conditions are met, then releases it to pay off your mortgage, the seller's remaining loan balance, and closing costs all at once.
Wiring is the standard method because it is faster and more secure than a cashier's check, and it creates a clear paper trail. The money typically arrives within hours on the same business day, though some banks process wires only during certain windows. You will need the receiving account details — usually provided by your title company or closing attorney — and you must wire the exact amount they specify, down to the cent.
The most common mistake is wiring to the wrong account or the wrong amount. Once money leaves your bank, it is difficult and sometimes impossible to recover. That is why title companies and real estate attorneys have strict procedures for confirming wire instructions before you send anything.
Key Takeaways
- Wire instructions must come from your title company or closing attorney in writing, never from a phone call, email, or text message.
- Verify the receiving bank name, account number, and routing number by calling the title company directly using a phone number from your closing documents — not a number provided in an email.
- Wire the exact amount specified, including all cents, and do so during your bank's wire-processing hours, which may close by early afternoon.
- Keep the wire confirmation number your bank provides and bring it to closing as proof the funds arrived.
- If you receive wire instructions by email or text, contact your title company by phone to confirm they are legitimate before sending any money.
Getting wire instructions from your title company
Your title company or closing attorney will send you wire instructions, usually three to five days before closing. These instructions include the receiving bank name, the account number, the routing number, and the exact dollar amount to wire. Some companies also include a reference number or your loan number to help the receiving bank identify the deposit.
Always request wire instructions in writing — a letter, email from an official company address, or a document on company letterhead. Do not accept wire instructions over the phone, by text message, or from an email address you have not verified. Scammers have intercepted wire instructions at closing and redirected funds to their own accounts; the only defense is confirming the instructions through a phone number you know is legitimate.
If you receive wire instructions by email, call your title company using the phone number on your closing disclosure or other official closing documents. Ask them to confirm that the email came from them and that the account details are correct. This step takes five minutes and can prevent a loss of tens of thousands of dollars.
Verifying the wire details before you send money
Before you wire anything, verify every detail with your title company by phone. Call the number on your closing documents, not a number in an email. Ask them to confirm the receiving bank name, the full account number, and the routing number. Read the numbers back to them digit by digit to catch any typos.
Ask also whether the receiving bank is in the United States or overseas. Domestic wires are safer and faster. If the wire is going to an international bank, ask why — some title companies use correspondent banks for certain transactions, but this is less common and adds complexity.
Confirm the exact dollar amount, including cents. The amount should match what your closing disclosure says you owe at closing. If there is a difference, ask the title company to explain it before you wire anything. Do not assume the wire amount is correct just because it came from the title company; mistakes happen, and you are responsible for catching them.
Sending the wire through your bank
Contact your bank and tell them you want to send a wire transfer. Most banks allow you to initiate a wire online through your account, by phone, or in person at a branch. Online is usually fastest, but some banks require you to call or visit in person for large amounts or for wires to new recipients.
Enter the receiving bank details exactly as the title company provided them. Do not retype or abbreviate anything. Copy and paste the account number and routing number if your bank's system allows it, because typing by hand introduces errors. Include any reference number or loan number the title company provided in the memo field.
Ask your bank when they process wires. Many banks stop accepting wire requests by 2 or 3 p.m. Eastern time on business days. If you miss that window, your wire will not go out until the next business day. If closing is tomorrow and you are wiring today, confirm with your bank that the wire will arrive in time.
Your bank will give you a confirmation number when the wire is sent. Write this number down and bring it to closing. If there is any question about whether the funds arrived, the confirmation number helps the title company trace the wire.
What to do if the wire does not arrive
If closing is scheduled and your title company tells you the wire has not arrived, contact your bank immediately. Provide them with the confirmation number and ask them to trace the wire. They can contact the receiving bank and find out where the money is.
Most domestic wires arrive within hours. If your wire was sent yesterday and has not arrived by mid-morning on closing day, something went wrong. Your bank can usually locate the problem — a typo in the routing number, a mismatch between the account number and account name, or a delay at the receiving bank.
If the wire was sent to the wrong account, your bank can sometimes recall it, but this is not may provide. The receiving bank may have already released the funds or may refuse to return them. This is why verification before sending is so important.
If the wire cannot be located or recovered, you may need to delay closing or send the funds by a different method, such as a cashier's check. Talk to your title company about your options. Most title companies have seen this problem before and know how to handle it.
Wiring funds as a seller
If you are selling, you do not typically wire funds — you receive them. However, you may need to wire money to pay off your existing mortgage or to cover other closing costs that exceed what you are receiving from the sale.
Your closing attorney or title company will tell you how much you owe and where to send it. Follow the same verification process: get wire instructions in writing, call to confirm the details, and send the wire during your bank's processing hours.
Some sellers wire payoff amounts to their current lender a day or two before closing to ensure the payoff is processed in time. Ask your lender whether they prefer the wire to arrive before closing or on closing day, and whether they have a specific wire deadline.
Common wire mistakes and how to avoid them
The most common mistake is wiring to an account number that is off by one digit. This sends your money to a stranger's account at the same bank. The second most common is wiring to the wrong bank entirely because the routing number was mistyped or copied from an unreliable source.
Another frequent error is wiring the wrong amount — usually too little because the buyer forgot to include closing costs, or too much because they added an extra digit by accident. The title company will catch this before releasing funds, but it delays closing and creates stress.
Scams have become more common in the last few years. Criminals intercept emails between the buyer and title company and send fake wire instructions with their own account details. The buyer wires the funds, the scammer disappears, and the buyer has no money for closing. The only protection is calling the title company by phone to verify wire instructions before sending anything.
Frequently Asked Questions
Can I wire funds the day before closing or do I have to wire on closing day?
You can wire the day before, and many title companies prefer it because it gives them time to confirm the funds arrived before closing begins. Ask your title company when they want the wire to arrive. If you wire the day before, make sure your bank processes the wire during their normal business hours so it arrives the same day.
What if I wire too much money by accident?
The title company will hold the extra amount and return it to you after closing, usually within a few days. Tell them about the overage as soon as you realize it so they can account for it. Do not assume they will catch it on their own.
Do I need to tell my bank I am wiring money for a home purchase?
You do not have to, but some banks appreciate a heads-up for large wires, especially if the amount is unusual for your account. Telling them can also help if your bank has fraud alerts that might flag the transaction. A quick call to your bank before you wire can prevent a hold or rejection.
What if my bank says they cannot wire to the account the title company gave me?
This is rare but can happen if the routing number is invalid or if the receiving bank is not in the U.S. banking system. Call your title company immediately and ask them to double-check the wire instructions. They may need to provide an alternative account or a different method of payment.
Can I wire funds from a joint account if only one person is on the mortgage?
Yes. The title company cares where the money comes from, not whose name is on the account. If the account is joint, either owner can authorize the wire. Some banks require both owners to authorize large wires, so check with your bank about their policy.