Buying with cash? Does the money go in escrow or if we make a large (1/2 down) deposit, do we just show up with cash at the closing?

Asked by Karen Young, Upper Sandusky, OH Tue Apr 13, 2010

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9
Alexiskanee, Home Buyer, South Miami, FL
Thu Jun 11, 2015
You will have closing costs which they call "settlement cost", they will be minimal because you do not have a loan. By paying cash you will save $$ in many ways. You will not have to pay the fees and charges that are associated with obtaining a loan but all other charges and fees will apply.

Reference Link: http://titlecompanies.net/
2 votes
Dan Dreher, Agent, Marion, OH
Wed Apr 14, 2010
Hi Karen - - it does depend on what you and the sellers agree to. When you make your offer, you will indicate how much you are putting in escrow for the purchase. In our office, the escrow deposit is placed in a non-interest bering account and held till closing. At that time, a check will be made out to you, which you can then endorse to the Title Co. to complete the purchase. You would be required to bring the remainder owed to the closing in the form of a cashier's check.

I would suggest that you work through a licensed agent to ensure all bases are covered.

Dan -
1 vote
Rob Henry, , Ohio
Tue Apr 13, 2010
Really it's however you & the seller agree to do it. The seller would feel more safe with a large deposit but it isn't a requirement, it's whatever you agree to in writing. Your title company would be able to help too. Using a licensed real estate agent is your best bet, however it sounds like you might be buying this without an agent so you'll need to rely on the title agency.

-Rob
BPO/REO blog:
http://www.bporeo.org
1 vote
Marita Topmi…, Agent, Indianapolis, IN
Tue Apr 13, 2010
Hi Karen,

Typically, you will send a copy of a check for 1% earnest money along
with your offer. You will write the terms as "cash". Once your offer is
accepted, you will deliver the check within 48 hrs. That money will be
held in escrow until closing at the title office. To the closing, you will
take the rest of the money in the form of a wire, ask your bank/ title representative about wire instructions.
You will also need funds to pay for recording, closing fee, etc at the time of closing. Your title company
will get a HUD 1 to you, hopefully several days prior to closing so you can arrange the wire and okay
the HUD.

I hope you plan on using an agent to watch over your interests.

Best of Luck,

Marita
Assoc Broker
Indianapolis area
1 vote
Dan Dreher, Agent, Marion, OH
Sun Mar 25, 2012
Hi Karen - - when you are paying cash for a property, there is usually an earnest deposit (anywhere from $500 to 10% of the purchase price) that is negotiated between the seller and buyer. That money is deposited with the Buyer's agency in a Trust Account. Also, the seller will usually request a "proof of funds" statement from the Buyer's financial institution to ensure they are capable of completing the purchase. At the closing the Buyer's agency will present the buyers with a check in the amount of the earnest deposit which is then endorsed over to the Title Agency conducting the closing. The Buyers will then bring a Cashier's Check for the difference between the earnest money and the total settlement amount to the Title Agency as well.
0 votes
Kawain Payne, Agent, Seal Beach, CA
Sun Mar 25, 2012
I would advise you to deliver certified funds to escrow, (cashiers check)

Handing over large amounts of cash is something I would not reccommend.

Kawain payne, Realtor
0 votes
Heather Van…, Agent, Lakewood, WA
Sun Mar 25, 2012
You'll be asked to bring a cashier's check or money order to escrow.
0 votes
Karen Young, Home Buyer, Upper Sandusky, OH
Sun Apr 18, 2010
Worked thru an agent. Might be unusual but I paid cash. Got the house of my dreams for 1/2 the price. Thank you all for advice. Without it I would have not realized my options and how to figure out the financing.
0 votes
Karen Young, Home Buyer, Upper Sandusky, OH
Thu Apr 15, 2010
I thank you all for your advice. I was a little bit lost on how to go about this process. I made an offer above the asking price and put up $10,000 earnest money and showed bank statements with more than the asking price. Hopefully it works out.
Thank you again! I never thought about just paying cash if I have it.
0 votes
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