Final answer:
The statement that closing funds must be a cashier's check, certified check, or wire transfer is true. These secure methods ensure funds are immediately available at closing. Moreover, an escrow account can manage ongoing property-related expenses, streamlining financial obligations for the homeowner.
Step-by-step explanation:
The statement that the funds a buyer brings to closing must generally be in the form of a cashier's check, a certified check, or a wire transfer is true. During the real estate transaction, particularly at closing, these forms of payment are considered secure and reliable. They ensure that the funds are immediately available, which is crucial in finalizing the sale. This method of payment protects all parties involved, given that personal checks may bounce, and cash is not practical for large transactions.In addition to understanding payment methods at closing, it's important to know the role of Escrow. An escrow account is used as a neutral third party to hold and disburse funds associated with the home purchase. It can also handle periodic expenses such as homeowner's insurance and property taxes, incorporating them into your monthly mortgage payment, thus simplifying the homeowner's financial responsibilities.