The exact amount of cash you need to bring to closing is typically not known until within 24 to 48 hours of closing. At that time, you’ll need to be able to go to your financial institution to get a cashier’s check for that amount. Alternately, you’ll need to contact your financial institution to have the money wired to the title company for closing. Since all of this tends to be happening at the last moment, you’ll want to have all the needed cash in a readily available account.
Some things to consider:
If you need to move money around from one account to another, be sure to do this early enough so that any hold on the funds will have time to clear.
If you need to liquidate any assets like stocks or bonds, be sure to do this early enough so that you have actually received the funds in advance of closing. The money from some of these transactions may not be available until a few days after their actual sale date.
People sometimes take out a loan on a property they already own to get cash for closing on the property they are buying. If you are doing this and if that other property is your primary residence, you need to close that loan early enough to allow for the three day right of recession – a right you have to cancel the loan up to three business days after closing. You cannot waive this right and the money from that loan will not be available to you until the 4th business day after closing. So, any loan you are taking out on your current primary residence to fund the purchase of your new property needs to be closed early enough to account for this delay plus any delay caused by a hold at your bank once the funds are deposited.