A wire transfer is a fast way to send money electronically. When you send a wire, your money is moved directly from one entity to another, usually using a bank or credit union. Because it is electronic, no physical currency is involved, making it very easy to send large sums of money securely! The funds from a wire transfer can be used as soon as they are received, making them ideal for closing real estate transactions.
The only risk associated with transferring funds via a wire is when the money is initially sent. You’ll know where to send your money after receiving wiring instructions from your settlement agent. Very rarely, a scammer will try to send you fake instructions to trick you into sending your money to them, instead of your intended recipient. To avoid scams and the potential loss of funds, always make sure you confirm your wire instructions with your closing attorney’s office. This should be done using a trusted form of communication that cannot be faked or intercepted by an outside party. Two great ways to do this are to call your closing attorney’s office directly, or confirm instructions in-person at the closing.
Once the instructions have been confirmed, and your funds have been sent, you can have peace of mind that you have sent your funds as safely as possible.
Did you know?The term “Wire Transfer” comes from a time when banks had to send money transfers over actual telegraph wires!