Pentagon Federal Credit Union
Login Accounts
Search
  • Routing # 256078446
  • Partners
  • Member Discounts
  • Wealth
  • Foundation
  • Branches & ATMs
  • About
  • Search
  • Checking & Savings
    • Checking
      • Free Checking
      • Access America Checking
      • All Checking Accounts
    • Savings
      • Premium Online Savings
      • Regular Savings
      • Money Market Savings
      • All Savings Accounts
    • Certificates
      • Money Market Certificate
      • Coverdell Education Certificate
      • All Certificates
    • IRAs
      • IRA Certificate
      • IRA Premier
      • IRA Savings Account
      • All IRAs
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
      • Advice Center
    • Special
      • Great rates for everyone with our savings options
  • Credit Cards
    • Our Cards
      • Credit Cards Overview
    • How Can We Help?
      • Contact Us
      • FAQs
      • Disclosures
      • Resource Center
    • Special
      • Choose the perfect card - Learn More
  • Auto
    • Auto Loans
      • Purchase
      • Refinance
      • Car Buying Service
    • Protection
      • Vehicle Protection
      • GAP Insurance
      • Debt Protection
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
      • Advice Center
    • Special
      • Find your next car - through PenFed Car Buying Service
  • Mortgage & Home Equity
    • Purchase
      • Buy a Home
      • VA Loan
      • FHA
      • Conventional Fixed
      • Jumbo Loan
      • Power Buyer
    • Refinance
      • Refinance your Home
      • VA Streamline
    • Home Equity
      • HELOC
    • Real Estate Services
      • Find An Agent
    • Tools & Resources
      • Knowledge Center
      • eBooks
      • New Homebuyer
      • Calculators
      • PenFed Title, LLC
      • Contact
    • Special
      • Increase your wins , Become power buyer certified
  • Loans
    • Personal Loans
      • Personal Loans
    • Student Loans
      • Student Loan Refinancing
      • In-School Student Loans
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
      • Advice Center
    • Special
      • Personal Loans made easy online
  • Learn
    • Learning Hub
      • Learning Center
      • Mortgage Knowledge Center
      • Advice Center
      • Financial Hardship Center
      • Emergency Furlough Relief Assistance
      • Natural Disaster Relief Assistance
    • About PenFed
      • About
      • FAQs
      • Forms
    • Security & Fraud
      • Security Center
    • How Can We Help?
      • Press Room
      • Careers
      • Contact Us
    • Special
      • Exclusive Member Offer - Spectrum mobile
  • Join Now
  • Log In
  • Accounts
  • Resources

Affinity Title

MORTGAGE KNOWLEDGE CENTER

PenFed Mortgage with Confidence

Home Buying Steps

  • Getting Started
  • Finding a Home
  • Getting a Mortgage
  • Home Ownership

Mortgage Topics

  • VA Loans
  • Conventional Loans
  • First Time Homebuyer
  • Home Equity
  • Homebuying 101
  • Checklists
  • Adjustable Rate Mortgages
  • PenFed Top 10
  • Refinance
  • Jumbo Loans
  • FHA
  • Videos

Mortgage Products

  • Mortgage Center
  • Refinancing
  • Home Equity
image

CONVENTIONAL LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

  1. Home
  2. Mortgage Knowledge Center
  3. How to Wire Funds for Closing

MORTGAGE

How to Wire Funds for Closing

What You'll Learn: How a wire transfer works, when to send a wire for closing, and wire safety tips

EXPECTED READ TIME: 5 MINUTES

Updated February 8, 2023

The big day is almost here. Soon you’ll sign papers and get the keys to your new home.

Before closing, the funds for your down payment and closing costs need to be ready. Sometimes a certified or cashier's check is accepted, but many companies prefer a wire transfer for house closing. Here’s what you need to know about wiring money for closing, including how it works, timing, and how to keep your funds safe.

What is a wire transfer?

A wire transfer, or money wire, is an electronic transaction that you can use to send money from one financial institution to another. Like automated clearing house (ACH) transfers, wire transfers are a convenient way to send money without exchanging cash.

You’ve likely used ACH transfers for everyday needs such as paycheck direct deposits, online bills, and person-to-person (P2P) payments through mobile financial products. Wire transfers are less common and typically reserved for larger transactions that need to be made quickly.

Who receives the wired funds?

Typically the funds are sent to your closing agent. Depending on your location, this person may be called a title agent, settlement agent, escrow agent, or closing attorney. They’ll provide the instructions for wiring money for closing including how much to wire and where to send it. Once the funds are received and all paperwork is signed, they’ll distribute the money to the appropriate parties.

How do you wire money to a title company or other closing entity? To send the wire transfer for closing to a title company, once you receive the instructions from your closing entity, contact your credit union or bank (wherever the funds are coming from) to find out their wire procedure. You’ll be asked to provide specific details, such as:

  • The amount to transfer
  • Your account number to withdraw the funds from
  • The recipient’s contact information such as name, address, and phone number
  • The routing number for the recipient’s financial institution
  • The recipient’s account number to deposit the funds

Some financial institutions require you to initiate a wire transfer in person. Most can assist you over the phone or provide instructions to wire funds online.

How do wire transfers work?

Wiring funds for closing is often required because it’s a fast and secure method for sending and receiving large payments. Not all ACH services or payment apps will handle the amounts common in house closings. While that’s an important difference behind the scenes, the process on the front end is similar to any other transfer. Here are the basic steps for wiring funds for closing:

  1. The person receiving the funds provides the person sending them with their financial institution’s routing number for wire transfers along with the account number to which the funds will be deposited. Note that a financial institution’s wire transfer routing number is typically different from its other routing numbers.
  2. The person sending the funds provides this information to their bank or credit union.
  3. The bank or credit union deducts the funds from your account and credits the recipient.

When do you wire money for closing?

You will receive a closing disclosure at least three business days before you’re scheduled to close. The disclosure will include the final dollar amount required at closing. Wire your money one to two days beforehand to ensure the funds are received by closing day. You can always confirm the amount and timing with your loan officer.

How long does it take to wire money for closing?

Mortgage wire transfers are the preferred way to send closing funds because the money often arrives within 24 hours. However, delays are possible due to many different factors including errors on the instructions or federal holidays. Give yourself a cushion to ensure the funds arrive in time and to avoid undue stress.

Can I wire funds the day of closing?

It’s not recommended to wire money on closing day. Although wires can go through within hours, there’s no guarantee the funds will be available on time. That could lead to delays, and possibly not getting the keys to your new home in hand.

How do you wire money safely?

It’s important to know that a wire transfer can’t be reversed once a recipient receives the funds. Unfortunately, that means wire transfers for mortgages are heavily targeted by cybercriminals. Remember these tips to keep your transaction safe:

  • Follow your loan officer or closing agent’s instructions exactly. If you receive any last-minute changes, call them at their main number to ensure the message came from them and not a scammer.
  • Call the closing agent right before you transfer funds to confirm the instructions.
  • Once the money is transferred, call again to let them know you sent the wire.

What is phishing?

A common way fraudsters try to lure homebuyers into sending funds to the wrong place is through phishing scams. Here’s an example:

  • You receive an email, phone call, or text message from someone claiming to be your closing agent or lender with instructions for wiring money.
  • Believing the information is legit, you send your funds to the location provided.
  • The money is sent to the criminal. By the time you realize it was a scam, it’s too late to get it back.

The phishing emails and websites are very convincing, looking exactly like legitimate ones. That’s why it’s important to never click on links or call the phone number in an email giving you conflicting wire instructions. Instead, contact your loan officer or closing agent directly.

Still have questions?

A wire transfer for house closing is often a borrower’s first introduction to this form of payment. Don’t be afraid to ask if you have questions about when, where, or how to wire money to a title company. Your lender is here to help.

For more information about PenFed Mortgages:
 

PenFed Mortgage: 

800-970-7766

Get Started

SIMILAR ARTICLES

What to Expect on Closing Day as a Buyer | PenFed Credit Union

When discussing mortgages, the topic of an escrow account will surely come up. Here's what you need to know about escrow accounts and how they impact real estate transactions.

spring house chores

What Is a Closing Disclosure? | PenFed Credit Union

A closing disclosure is an important document you'll receive three days before you close your loan. Understanding how to read it will help you double-check the specifics of your mortgage.

summer house chores

What Are Typical Closing Costs? | PenFed Credit Union

Once you've decided on a home, it is time to close on the loan. It is important to understand what typical closing costs are in order to prepare and get your new set of keys.

fall house chores

How to Spot a Phishing Email | PenFed Credit Union

From urgent requests to bad grammar, we've got your back when it comes to suspicious emails. Learn how to identify, avoid, and report phishing attempts.

winter house chores
image

CONVENTIONAL LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Home Buying Steps

  • Getting Started
  • Finding a Home
  • Getting a Mortgage
  • Home Ownership

Mortgage Topics

  • VA Loans
  • Conventional Loans
  • First Time Homebuyer
  • Home Equity
  • Homebuying 101
  • Checklists
  • Adjustable Rate Mortgages
  • PenFed Top 10
  • Refinance
  • Jumbo Loans
  • FHA
  • Videos

Mortgage Products

  • Mortgage Center
  • Refinancing
  • Home Equity

PenFed HELOC

Rates as Low as % APR* with flexible use of funds

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Disclosures

1Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on discount point, which equals percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.

*Prime Rate is % as of . The APR for this Home Equity Line of Credit (HELOC) is based on prime plus a margin and can change monthly. Fixed Rate Advances will be amortized over the Fixed Rate Advance Term, with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin, and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than % for primary residences and second homes.

  • Annual Fee: Notwithstanding the foregoing, an annual fee of $99 will be assessed on each account anniversary.
  • Home equity lines of credit (HELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan on monthly basis. Closing costs range between $500 and $8,500 for credit lines of $500,000. Contact a representative for additional details.

Appraisals: PenFed will attempt to establish value via an independent method. If that method is unsuccessful, or the value is not sufficient for the amount requested, an appraisal will be required regardless of CLTV. An appraisal is always required in the following circumstances:

For all loans with a loan amount greater than $400,000.

If an appraisal is required, it must be ordered by PenFed. You will be contacted for authorization and payment prior to ordering. Appraisal fees average $550 to $850 (some run higher).

  • Closing Cost Credit: PenFed will pay most closing costs associated with a home equity line of credit (HELOC), which includes credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, property search, and quick close. Member is responsible for any city, county, and/or state taxes if the subject property is located in FL, LA, MD, MN, NY, TN, or VA. If an appraisal is required, the member, who is responsible for the fee whether or not the loan closes, will pay the cost.

Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Draw Period. During your Draw Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.

Fixed Rate Advances will be amortized over the Fixed Rate Advance Term with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than % for primary residences and second homes and 4.75% for investment properties.

Property Insurance: Property insurance is required.

Multiple PenFed Loans: Multiple PenFed Equity loans and HELOCs are available as long as the member and collateral qualify (except Texas). For Equity loans and HELOCs the total indebtedness cannot exceed $500,000 for all PenFed Equity and HELOCs combined.

PenFed does not lend on:

  • Mobile homes
  • Co-ops or time-shares
  • Properties that are currently listed on the market for sale
  • Commercial property or property used for commercial purposes, even if a residence is part of the property
  • Undeveloped property (land only)
  • Properties with more than 4 units

Properties that are currently under major construction/renovations: Property must be fully livable, with no safety issues. (Examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool).

  • Additional limitations may apply

Home Equity Line of Credit:

  • This Account has a Draw Period of 10 years, followed by a repayment period of 20 years.
  • If only minimum payments are made during the draw period, the loan balance will not decrease.
  • In Texas, the maximum CLTV available is 80% on owner occupied properties. Additional restrictions apply in Texas, so please ask a representative for details.
  • In all other states, the maximum CLTV is 85% on owner occupied properties and second homes. Additional restrictions or requirements may apply based on application characteristics.
  • Property type of Condo has a maximum CLTV of 80%.
  • The maximum CLTV available is dependent on credit qualification.
  • Rates vary depending on owner occupancy and CLTV and other loan criteria.

Minimum Loan Amount Requirements in all States:

  • For an owner occupied property or second home the minimum loan amount is $25,000 and the maximum amount is $500,000 with a CLTV of 85% or less of the fair market value.

Other terms and conditions apply; call 844-918-4307 to speak with a representative for details. All rates and offers are subject to change without notice. To receive advertised product, you must become a member of PenFed.

  • Locations
  • Careers
  • Press Room
  • Foundation
  • Contact Us

This credit union is federally insured by the National Credit Union Administration. Rates are current as of September 2023 unless otherwise noted and are subject to change.

APY = Annual Percentage Yield
APR = Annual Percentage Rate


  • facebook
  • twitter
  • linkedin
  • youtube
  • instagram
Download the PenFed app on Apple Store Download the PenFed app on Google Play
Read More about Equal Housing
Routing #256078446

©2023 Pentagon Federal Credit Union

Privacy
Security
Disclosures
Fees
Rates
Forms
Site Map

We use cookies to provide you with better experiences and allow you to navigate our website. By clicking “I Accept”, you consent to our use of cookies in accordance with our Privacy, GDPR and Cookie Policies.If you are a California resident, please visit our Privacy Policy page for the Notice of Right to Opt-Out of Sharing.

×

IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party Website that is not a part of Pentagon Federal Credit Union.


The content you are about to view is produced by a third party unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party site. PenFed Realty, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.


For more information about the relationship between PenFed and PenFed Realty, LLC, see the Affiliate Business Arrangement Disclosure.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party Website.


The content you are about to view is produced by a third party website that is unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party site. PenFed Title, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.


For more information about the relationship between PenFed and PenFed Title, LLC, see the Affiliate Business Arrangement Disclosure.


CONTINUE OR CANCEL

Member Login

Please enter a valid username.

I need help logging in

Having Trouble?
Forgot Username
Forgot Password
Forgot Username and Password
Unlock Account


First time logging in?

Create an online account

Not yet a member?

Become a member and take advantage of products and exclusive offers!

Join Now

Get Started

×

LOGIN

JOIN
Dismiss
PenFed App
PenFed PenFed, Inc FREE - On Google Play