Home Buying in Fairfield>Question Details

Edna, Home Buyer in Vacaville, CA

Down payment on a house

Asked by Edna, Vacaville, CA Mon Jul 30, 2012

Can I write a check for the down payment of a new house?

Help the community by answering this question:


Maria Cipollone’s answer
No. But you can write a check for the first and second deposit stipulated in your sales contract. The title company requires a cashier's check or wire transfers to their escrow accounts, the same day or one day before the closing.

Maria Cipollone

2 votes Thank Flag Link Mon Oct 1, 2012
Edna, I recently had a transaction that required a Wire only be used to close, so do not be suprised if they ask you to wire your funds in. Most local title companies will still allow personal checks for the initial escrow money deposit and a cashiers check for final funds to close, but some out of town or S Cal companies can mandate wire only! be prepared for either!
0 votes Thank Flag Link Mon Sep 10, 2012
Hi Edna,

When I first read your question I was thinking of an initial good faith deposit, not the purchase down payment and/or closing funds; however, as it turns out my response is still accurate.

Technically, escrow CAN accept a personal check for the purchase down payment/closing funds; but, there are submission timelines you must meet. The personal check must be submitted to allow no less than a 7 business day hold for local banks and/or a 10 business day hold for non-local banks. These requirements are to ensure the funds transfer from the account and the check does not bounce. Once you bypass the timeline cut-offs above Escrow will refuse acceptance of a personal check for the closing funds.

In practice, most Buyers sign off right before they are ready to close escrow; as such, this method of payment is many times removed as an option as there is not enough time for the funds to clear the account. Of course, if you know ahead of time you can plan for this. In fact, depending on the total amount being transferred, the interest being paid on the savings account and the cost of the wire transfer fee you may slightly reduce your transaction cost by using the personal check.

Best Regards, Steve
0 votes Thank Flag Link Mon Jul 30, 2012
Hello Edna

You can write a personal check for the initial deposit when you make an offer on a property but the rest of the down payment has to be paid to the escrow company at time of closing via certified funds or a wire transfer.
0 votes Thank Flag Link Mon Jul 30, 2012
Edna, if you mean a personal check then the answer is no. Escrow will only accept certified funds so you will need a Cashiers check, wire transfer or other.
0 votes Thank Flag Link Mon Jul 30, 2012
Hi Edna,

You sure can, in fact, this is typically how it's done. Some also wire transfer the funds.

0 votes Thank Flag Link Mon Jul 30, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer