Wiring Money: A How-To (and Why Should I?) Guide - Quicken Loans Zing Blog

This is a guest post from Title Source. Title Source is one of the largest providers of title insurance, property valuations and settlement services in the nation.

Wiring money … how is it done, where does it go and what benefits will it provide me? These are common thoughts running through the mind of someone who’s attempting to wire large amounts of money for the first time. Let us assure you, wiring money is secure, quick and reliable. Here’s your mini guide on wiring money.

What Is a Wire Transfer?

Wiring money is more properly referred to as a bank wire transfer. It’s a method of payment that happens through an electronic funds transfer from one bank to another. Unlike when you deposit money in someone’s account, there is no physical cash movement in this option, only the balance in each account is modified. Since the identification of both the parties is confirmed prior to transfer, it is considered a safe method. The popularity of wire transfers can also be attributed to their speed and convenience. This is the method used when closing a mortgage on a home.

 How Do I Complete a Bank Wire Transfer?

Step 1: Assemble the information you need. This includes the recipient’s name, bank name, the bank’s American Banking Association (ABA) code and the recipient’s bank account number.

Step 2: Approach your bank and place an order to transfer a specific amount to your recipient.

Step 3: Complete the wire transfer form. This can sometimes be found online, but if not, you can get one from your bank’s branch. There is a spot on the form for additional optional information. We suggest that you fill it out, identifying the address of the subject property.

Step 4: Verify required additional information. A state issued ID or verification information will be required to complete the transaction.

Step 5: Pay any required transfer fees, which will vary by bank or credit union. When your transfer is complete you will receive a receipt either at the bank, by fax or email.

 What Are the Benefits of Wiring Money?

  • It’s a great way to get money from A to B with minimal delays.
  • Funds are typically available within hours of the closing (cashier, certified and personal checks require a minimal 10 day hold to clear funds).
  • There are virtually no geographic limitations.
  • There is no need to go to the bank to deposit a check.
  • Because bank wire transfers are used for important and large transactions, many system are in place increase security and reduce fraud.
  • It’s often the cheapest method for transferring funds between bank accounts

What Are the Disadvantages of Wiring Money?

  • The buyer and the seller may accrue a variable fee for the transaction.

Any questions or comments? Please let us know in the comments below!

 

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This Post Has 6 Comments

  1. I have just recently chatted with Quicken Loans and they told me that there is No Charge to wire my Pay Out to my bank account. That’s Great!

  2. You have gave me insight on the meaning wire but not on the answer how much will this cost me? This seams to be a hidden cost, right?

    1. Hi Virgle:

      We weren’t trying to hide the cost. It just depends on your bank or Western Union or wherever you go. They all have different fees they charge for these things so it’s hard to give you a number.

      Thanks,
      Kevin Graham

  3. Can you elaborate on what the bank can do, and what the borrower can do to verify the wire instructions they are in possession of are legit and haven’t been forged by a third party . What percentage of mortgage companies title attorney escrow use multifactor authentication?

    1. Hi HJ:

      Typically your bank will do a couple of things when they need to verify your identity. They can look at your picture and the signature and info on your ID. Many times, they also ask questions only you would know the answer to. When I put in my password online for the bank, they ask me the name of my first pet or favorite toy as a child. I wouldn’t have any statistics handy on title companies and multi-factor authentication.

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