It is typical for many title firms, real estate agents, and other professionals in the field to use electronic transfers of money, i.e. e-money, for closing charges throughout a real estate transaction. Additionally, wire transfers are practical for making other payments, such as the initial deposit or fees for additional mortgage-related activities. Because they enable the receiver to access the cash instantly, wire transfers are often chosen over cheques.
Electronic money transfers made using a system of electronic payments are preferable to checks and are similar to wire transfers in that they move money quickly and carry less risk of fraud or rejected checks for both the person making the transfer and the recipient. In the real estate market, many people who want to grow their business and improve customer convenience and service favor electronic money transfers.
Electronic Money Transfers: Are They Secure?
You might want to be aware of the alleged exposure associated with using an electronic funds transfer for the purchase or sale of property before diving into the reasons why you should. Although it is undoubtedly accurate that there are many dishonest people who would try to steal money through the use of wire transfers, the method is entirely secure when you are transferring money to an individual you know and trust. You have likely heard quite a bit about wire fraud schemes.
Wire transfers should only be avoided when dealing with someone you have never seen in person, such as those who are selling products on websites like Facebook Marketplace or Craigslist. And even though real estate wire fraud is a problem, using an e-money transfer is the best option as long as you are working with a lender or real estate agent whom you know and trust. This is why…
# 1 Security and Safety
Electronic transfers of cash are, in fact, among the safest ways to send money to individuals you know, as was already noted. Your bank or financial provider can conduct an electronic money transfer in person, over the phone, or, depending on your bank, online using a banking site. The money is sent from your bank account to the account credentials you supply, which was supplied to you by the title firm, financier, or real estate broker, through a secure network. Therefore, wire transfers are a secure approach to guarantee that the money required for closure is received by the right party on time.
The risk of lost or stolen cashier’s checks is removed when electronic money transactions are used to start an electronic money transfer for real estate closings. Additionally, there is no need to wait for a standard check to clear its contents. They are also perfect for virtual closings that take place abroad or in situations where you are unable to physically attend the closing.
Many in the real estate sector advise adopting a secure payment platform for increased safety and security. The details of your bank account are kept confidential and the technology allows for safe, encrypted payments, greatly reducing the danger of wire fraud. A user simply registers an account, enters their checking account routing number along with additional information, and then requests a transfer to another bank account. The electronic transfer of funds may then be carried out whenever it suits both parties without having to visit the bank.
# 2 Speed
The absolute last thing you would like is for your closure to be delayed after a drawn-out financing procedure. Electronic payments are the quickest option to cover your closing fees so you can move forward. And although your bank can start a wire transfer quickly, a money transfer site can finish transfers in just a few minutes. This guarantees that there will not be any delays brought on by banking deadlines or schedules or by having to wait a few working days for checks that are written to clear.
In order to ensure that the mortgage procedure goes well, real estate agents may even ask for upfront payments or additional charges via a money transfer service and then quickly receive those payments. This eliminates the need to schedule appointments to pass off checks or wait for checks to clear the bank. Title firms do not have to wait for cheques to come in the mail, and real estate agents or sellers do not have to worry about checks that bounce.
There is also a quick alternative that is steadily gaining acceptance but is not yet offered by all institutions. Real-time payments (RTP) are a fast-acting kind of payment for both private persons and commercial entities. Real-time payments simplify payments for transactions between two businesses (B2B), payroll, peer-to-peer (P2P) activities, and more. They also alleviate a variety of problems. RTPs have been more widely used in nations like China, the UK, and India, but the United States has been hesitant to adopt this kind of money transmission. In the upcoming years, real-time payments are anticipated to pick up steam in the United States.
# 3 Convenience
Homebuyers frequently have to flit from one appointment to another with a real estate agent and gather a variety of financial records throughout the mortgage application procedure. An otherwise unpleasant process is significantly made more convenient by electronic payment solutions. Brokers can easily request monies within minutes from buyers using a payment platform that is intended to start electronic payments for real estate transactions, and buyers may easily start the transfer from the comfort of their own sofa.
There are many other payment applications available, as well as alternative payment options like Venmo, PayPal, or Neteller, wherein you set up e-wallets. However, a platform for money transfers like paymints.io is best for the real estate sector. No time should be wasted phoning the bank to arrange the transfer. Without further action or communication with a bank, monies can be sent very immediately when the platform has received the necessary financial information.
# 4 Preferable for Real Estate Experts
In addition to e-commerce, e-money transactions are frequently used for paying bills, payments made with credit cards, direct deposits for wages, paying for pastimes requiring top-ups and withdrawals of funds – such as one of the favorite pastimes for men exercised on platforms rated at Bookmaker-expert.com/bookmakers/crypto-bookmakers/ – and other purposes. But for all the reasons listed above, computerized money transfers will be quite advantageous for real estate professionals. You have a lot on the agenda and much to accomplish every day, whether you are a real estate broker, a lender, or even the point of contact at an escrow firm. Fitting in time for meetings with both buyers and sellers to get your money is not something you want to have to do.
You may devote plenty of time to focusing on other crucial activities by using electronic money transfer technology instead of accumulating bank checks or cashier’s checks throughout the day. This can help you feel calmer and less stressed, which can eventually change your business.
Every person in the real estate business, both buyers and sellers, is aware that the mortgage application and approval process may occasionally be stressful and even perplexing. There is a lot at stake, and there are several responsibilities that must be balanced during the day. But if a minimum of one task can be completed more quickly, to everyone’s advantage, it helps to reduce some of the pressure and make sure the procedure can continue to go as effortlessly as feasible.
The answer, which serves to save borrowers, purchasers, marketers, and real estate brokers time and money, is electronic money transfers through a safe, dependable, and compliant money transfer platform. In comparison to alternative payment methods, an electronic money transfer features speed, rapid approval, and an informational solution.
You will realize that any other means of payment is unnecessary once you begin making use of a secure electronic transfer of funds system to pay early payment deposits, closing charges, and other fees.