How Long Does a Wire Transfer Take After Closing?

Discover how long a wire transfer takes after closing, what can cause delays, and tips to speed up the process. Here's what home sellers can expect.

When you sell your home, the proceeds are often part of your next move. The closing date marked on your calendar is like a door waiting to be opened — a door that leads to a big life change. Getting paid promptly is a top priority. But how long does a wire transfer take after closing?

In this post, we’ll explain the typical timeframe for wire transfers in real estate transactions, what might cause a delay, and tips to speed up the process.

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What is a wire transfer in a home sale?

A wire transfer in a home sale is an electronic method of transferring funds from one bank or financial account to another. It is commonly used in real estate transactions to quickly and securely move large sums of money, such as the down payment, closing costs, and the final proceeds to the seller. This method ensures that the funds are transferred almost instantly once the transaction is initiated, reducing the risk of fraud and providing immediate access to the money. Wire transfers are handled differently in some states.

How does a real estate wire transfer work?

The wire transfer process at closing is typically completed in three steps:

Buyer’s down payment and closing costs sent to escrow
The buyer sends their down payment and any required closing costs to the escrow account, a neutral third party that holds the funds until all conditions of the sale are met.
Buyer’s lender sends mortgage loan amount to escrow
The buyer’s mortgage lender wires the loan amount to the escrow account. This step ensures that all the necessary funds are available to complete the purchase.
Escrow company sends net proceeds to home seller
Once all conditions are satisfied and the transaction is finalized, the escrow company wires the net proceeds (the remaining funds after deducting fees and expenses) to the seller’s bank account.

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