Certified Funds at Closing

I am often asked why certified funds are necessary for closing. We do take personal checks up to a certain amount, but any large amount must be a certified check or wire transfer so that there is certainty that the funds are "good". In other words, a personal check can be written even though funds are not actually in the account, but certified checks and wire transfers are only made if actual funds are in the bank's possession before creating that check or sending the wire. Each title company has a different threshold for what they will accept in personal funds, based on how stringently or carefully they oversee their escrow accounts. So though it may be inconvenient to work with a title company that has a lower threshold, all it does is tell you how careful they are with their escrow accounts. 

I wish you all a safe and warm holiday!