You bring a cashier's check or wire the money before closing day
Your down payment moves from your bank account to the seller's (or the title company's escrow account) in one of three ways: a cashier's check you bring to closing, a wire transfer you send the day before, or occasionally a personal check if your lender allows it. Most lenders require proof that the money came from your own accounts and has been sitting there for at least two months — this is called seasoning, and it exists to prevent fraud and money laundering.
The exact method depends on your lender's rules and your closing company's setup. You will find out which one applies when you receive your Closing Disclosure, a document your lender sends you three business days before closing. That same document tells you the exact dollar amount due at closing, which includes your down payment plus closing costs.
Key Takeaways
- A cashier's check or wire transfer are the two standard methods; your lender specifies which one in your Closing Disclosure.
- If you wire money, do it the day before closing and confirm the wire instructions directly with your closing company by phone, not email.
- Your lender will ask for bank statements showing the down payment money has been in your account for at least two months.
- Bring your cashier's check to the closing table itself, or the closing agent will not be able to fund the loan.
- If you are borrowing the down payment from a family member, your lender requires a signed gift letter stating it does not need to be repaid.
Cashier's checks: what to do before closing day
A cashier's check is a check drawn on the bank's own account, not yours, so it cannot bounce. Go to your bank in person — do not order it online — and ask for a cashier's check payable to the title company or closing agent, not to the seller directly. The closing agent's name appears in your Closing Disclosure under "Closing Agent" or "Settlement Agent."
Get the check at least two business days before closing. Do not wait until closing day morning. If the bank makes an error or runs out of checks, you will have time to fix it. Write down the check number and keep your receipt. Bring the original check to the closing table in an envelope — do not deposit it anywhere or try to photograph it and send it electronically.
If you are closing on a Friday, get your check on Wednesday or Thursday. If your closing is Monday, get it Friday before the weekend. Banks are closed on weekends and holidays, and a missing cashier's check can delay closing by days.
Wire transfers: timing and verification
If your lender requires a wire transfer, you will send the money electronically from your bank to the closing company's account. The closing agent provides wire instructions in a document called the wire instructions letter or sometimes embedded in the Closing Disclosure. This letter includes the bank name, account number, routing number, and the exact amount to wire.
Wire the money the business day before closing, not the morning of closing. Wires typically clear within a few hours, but if you send it the morning of closing and something goes wrong, there is no time to fix it. Call your closing company by phone — not email — to confirm the wire instructions before you initiate the transfer. Scammers sometimes intercept emails and change the account number. Hearing the account number read aloud by someone you called directly is safer.
After you send the wire, ask your bank for a confirmation number and the exact time it was sent. Text or call your closing company to tell them the wire is on the way and provide the confirmation number. This gives them a heads-up to watch for it and prevents delays if there is a processing question.
Proving the money is yours: bank statements and gift letters
Your lender will ask for bank statements from the last two months showing that your down payment money has been in your account the whole time. This is the seasoning requirement. If you received a large deposit in the last 60 days, your lender will ask where it came from. If it came from another account you own, you may need statements from that account too, going back two months.
If someone gave you money as a gift — a parent, grandparent, or other family member — your lender requires a gift letter. This is a signed statement from the person who gave you the money, saying it is a gift and does not need to be repaid. The letter must include the amount, the date, and a statement that no repayment is expected. Your lender provides a template, or you can write one yourself as long as it includes those elements and is signed and dated.
If you borrowed money from someone, even if they say you do not have to repay it, you cannot use a gift letter. Your lender will see the loan as a debt you owe, and it will affect your debt-to-income ratio. If the lender finds out later that you promised to repay it, that is fraud.
What happens if you do not have the full amount on closing day
If your cashier's check does not arrive, your wire does not clear, or you come up short for any reason, closing does not happen. The lender will not fund the loan without proof that the down payment is in the closing company's account. You will have to reschedule closing, which costs time and sometimes money — your rate lock may expire, your inspection period may close, or your seller may walk away.
If you realize you are short on funds before closing, tell your lender when ready. Some lenders allow you to reduce your down payment and increase your loan amount, though this changes your monthly payment and may trigger a new appraisal. Others will not move the closing date. The earlier you know about a shortfall, the more options you have.
Closing day: bringing the check and signing the papers
Arrive at closing with your cashier's check in hand, your ID, and any other documents your closing agent requested. The closing agent will take the check, verify the amount and payee, and record it as received. You will then sign the promissory note, the mortgage or deed of trust, and a stack of other documents. The closing agent will explain each one, though you can ask to read them beforehand if you want.
After you sign everything, the closing agent sends the documents to the lender for final review. Once the lender approves, the lender funds the loan — meaning the lender sends the money to pay off your old mortgage (if you have one) and the rest goes to the seller. This usually happens the same day or the next business day. You will receive a Closing Statement (also called a Settlement Statement) showing where every dollar went.
You do not get the keys until the lender has funded and the title company has recorded the deed at the county recorder's office. This is usually the same day, but can take until the next business day in some counties.
Frequently Asked Questions
Can I bring a personal check instead of a cashier's check?
Some lenders allow it, but most do not. A personal check can bounce, and the lender cannot fund the loan until it clears — which can take three to five business days. Ask your lender in writing before closing day. If they say no, do not bring a personal check.
What if I wire the money but it does not show up by closing time?
Call your bank when ready and ask them to trace the wire. Provide the confirmation number you received when you sent it. Most domestic wires clear within hours, so a missing wire usually means the account number was wrong or the receiving bank is processing it slowly. Your closing agent can contact their bank to check. If the wire cannot be found, you may need to reschedule closing.
Do I have to wire from my main checking account?
No. You can wire from any account in your name — savings, money market, or another checking account. Your lender will ask for statements from whichever account the money comes from, going back two months to show seasoning.
What if my down payment money is in a joint account with my spouse?
That is fine. Both names on the account count as your money. If the account is in someone else's name — a parent or friend — that money is a gift and requires a gift letter, even if you have access to the account.
Can I use a credit card to pay my down payment?
No. Down payments must come from your own bank accounts or from a gift. Credit card payments are not allowed because they are debt, not savings, and they would increase your debt-to-income ratio.