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Smart phone apps are changing the way many title companies accept checks at your home closing – tips for home buyers in Macomb County MI

September 27th, 2012 · No Comments · tips for home buyers

“Clear to close!” are 3 words that home buyers are happiest to hear.  This means that their mortgage lender has cleared your file to close on your home purchase, and now the title company and lender prepare the closing documents.   The closing date will be coordinated and set by the listing agent, your buyers agent, the lender & the title company.

What’s next?    You will receive a call either the day before your closing, or perhaps even the morning of your closing telling you the amount of money that you will need to bring.  (Your down payment, closing costs, pre-paid escrows, etc.)

Over the last 15 years (my time in this industry) my buyer clients have been instructed by the title company to bring a cashiers or certified check made payable to themselves to closing in the amount that their lender instructs.     After all the paperwork has been signed, the buyer/s endorse the check over to the title company.

All of this is changing, and quite rapidly.  Smart phone apps now allow a person to take a photo of a check and send it to their bank as a deposit to their account.  These apps make mobile banking quite easy for people and have their place in the ever changing banking world.  However, they are creating havoc in other areas:  Real estate closings.

Let’s say you take a photo of a  cashiers or certified check you have had made payable to yourself.  You then send the “check” to your bank and have it re-deposited back in to your account.  You then bring this same check to closing on your home, and endorse the check over to the title company.  Which “check” will clear first?   Probably the one you sent through that app back over to your bank account, and the paper check that you presented to the title company will most likely bounce.

Title companies, where most closings take place, are wise to this possibility, and many now have changed their policies to instruct that all cashiers and certified checks be made payable to the title company instead of to yourself.

When you are getting ready to close on your home always have your buyers agent double check with the title company as to how the check should be made payable.   There have been a few surprises out there at closings (thankfully none for my buyers) in which a buyer has gotten to the closing table only to be told that the check made payable to themselves would not be accepted.

Happy closing day!

Kris Wales – A partner for your real estate needs in Macomb County MI
SEARCH Macomb County homes for sale
Contact Kris – (586) 536-5453 cell

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Important copyright information: All photos were taken by Kris Wales. Do not copy and use photos for your own use, whether it be for personal or commercial purpose. All articles were written by Kris Wales. Once again, do not copy and use for your own purposes. Important disclaimer: Views expressed on the blog by the author and commenters do not express the views of Keller Williams Realty. All information contained is deemed to be reliable at the time of posting but not guaranteed.