When you’re preparing to close on a home, you’ll need to bring certified funds to the table. That means providing money that the title company can guarantee is legitimate and immediately available.
But how should you deliver those funds: with a wire transfer or a cashier’s check? Both options meet the requirement for certified funds, but each comes with its own pros, cons, and security considerations.
In this guide, we’ll explore the differences to help you choose the best method for your next home purchase.
Get a home loan with GO Mortgage.Why are certified funds required at closing?
Certified funds are a critical requirement for closing day because they eliminate the risk of bounced checks or delayed payments.
A title company—the neutral third party managing the transaction—can’t record the property deed until the purchase funds are verified and available.
Quick definition: Certified funds
Certified funds refer to any form of payment guaranteed by a financial institution, such as a cashier’s check or wire transfer.
Mortgage transactions involve large sums, and all parties need assurance that the money is real and ready to move. Certified funds fulfill that role, helping ensure the seller receives their payment and the buyer secures the deed without delays.
Mortgage tip: Your deed is your legal proof of property ownership. Keep it stored safely for as long as you own your home.
What is a cashier’s check?
A cashier’s check is a check issued directly by a bank or credit union.
To obtain one, you’ll need to:
- Visit your bank in person (some may allow online requests)
- Provide identification
- Have enough funds in your account
Once issued, the funds are withdrawn from your account and backed by the bank’s own reserves, making the check as good as cash.
Pros of a cashier’s check
- Recognized and accepted everywhere
- Lower fraud risk compared to personal checks
- Physical proof of payment
Cons of a cashier’s check
- Requires an in-person visit (unless your bank offers online options)
- Some banks need advance notice for large checks
- Can be lost or stolen in transit
Tip: Call your bank at least one week before closing to ask about their cashier’s check policies and any daily limits.
What is a wire transfer?
A wire transfer is an electronic transfer of funds from your bank account directly to another financial institution.
It’s one of the fastest and most secure ways to send money, when done correctly.
How to initiate a wire transfer
- Log in to your bank’s secure portal (if offered)
- Call or visit your local branch
- Provide the recipient’s wire instructions (name, account number, bank routing number)
Unlike checks, wire transfers can’t be reversed, and they typically settle the same business day if initiated before your bank’s cut-off time.
Pros of a wire transfer
- Fast and efficient
- No physical item to lose or misplace
- Convenient for remote or last-minute closings
Cons of a wire transfer
- Usually comes with a fee ($15–$40 is standard)
- Susceptible to fraud if wire instructions are tampered with
- Final once sent—no do-overs
Important: Double-check the wire instructions by phone with your title company before sending funds to prevent fraud.
Is a wire transfer a certified fund?
Yes, a wire transfer is considered certified funds because the bank directly verifies and transmits the money to the recipient.
It provides the same level of security and immediacy as a cashier’s check—if not more so—when handled securely.
Wire transfers meet the title company’s requirement for final payment and are frequently used in real estate closings today due to their speed and reliability.
How to protect yourself from wire fraud
Unfortunately, wire fraud remains a significant concern in the real estate industry.
Cybercriminals often target homebuyers in the final days before closing, posing as escrow agents or title reps to trick you into wiring money to fraudulent accounts.
Warning signs of wire fraud
- Last-minute changes to wire instructions
- Poorly formatted or generic emails with no signatures or logos
- Pressure to act quickly without confirmation
How to stay safe
- Always call the title company at a verified phone number to confirm wire instructions.
- Never email sensitive information like your bank account number or Social Security number.
- Use secure portals or encrypted email when exchanging documents.
If you believe you’ve been targeted or scammed, contact:
- Your bank to attempt to halt the transfer
- The FBI’s Internet Crime Complaint Center (IC3) at ic3.gov
- Your local police or IRS field office
Prepare a report with detailed transaction info, including amounts, contact details, and timelines.
Which should you choose?
Here’s a quick comparison to help you decide:
| Factor | Wire transfer | Cashier’s check |
| Speed | Same-day (if early) | Same-day (must visit bank) |
| Security | High (but fraud exists) | High (less fraud risk) |
| Cost | $15-$45 fee | Often free or low-cost |
| Convenience | Remote/online options | In-person required (mostly) |
| Reversible? | No | No |
Bottom line
- Choose a wire transfer if you prefer electronic convenience and confirm all details carefully.
- Choose a cashier’s check if you want a physical, tangible form of payment and can visit your bank ahead of time.
Closing with confidence: Choose the best payment method for you
There’s no universally “best” option—just the one that best fits your needs and timeline.
Whichever you choose, the key is to prepare for homebuying early and communicate clearly with your lender and title company.
Want help navigating the homebuying process? Get started with GO Mortgage today to receive expert guidance, personalized financing options, and peace of mind every step of the way.