Why you can not bring a check to closing anymore: Home Buyer information
Why Closing Attorneys need wired funds for closing
In the “old days”, lenders sent regular checks and buyers wrote personal checks at closings. Sometimes lenders did not even provide the check until after closing!
In the early 1990’s, Georgia passed the Good Funds Law to provide that all funds over $5,000 from buyers and sellers brought to closing must be in the form of cash, cashier’s check, or wire. Lenders could still send their own checks, but they could not wait to fund after the closing.
In 2007, checks from major lenders started bouncing, and the funding process changed. Title companies recommended that closing attorneys require wired funds for all lender funds and even funds coming from other closing attorneys.
Cashier’s checks can be stopped by a “lost or stolen” affidavit. There have been many reports of stolen blank cashier’s checks and even counterfeit cashier’s checks.
In addition, a deposited cashier’s check is treated just like a personal check; it is not considered “cleared funds” for several days.
Closing attorneys are being asked to send wired funds for most payoffs, so they can not wait for the cashier’s checks to “clear”.
Commercial closings have always required wired funds, and this is the best way to protect the buyers, lenders, sellers, and closing attorneys for residential closings also.
So these days when you buy a house, your down payment must be wired to the attorney's office from your bank. Most realtors recommend doing this the day before closing to make sure the funds are there on time for a closing.