Down payment transaction from VG Prime?

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Betelgeuse
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Joined: Wed Feb 28, 2007 2:31 am
Location: Chicago Area

Down payment transaction from VG Prime?

Post by Betelgeuse » Sat Apr 12, 2008 12:39 am

I may be a first time homeowner soon. I say "may be" due to it being a shortsale. However the seller and I have come to an agreement that goes to the bank.

So if it goes through, my lender and realtor have mentioned having a certified or cashiers check for the down payment at closing. My cash reserves for this are in VG Prime MM, and I have a checking enabled on it.

Is using a check from my prime account koshier? Or do I need to move my funds somewhere else to get a cashiers check? Obviously, I won't do anything until they would tell me the exact number needed before hand.

Any tips for this type of transaction with VG prime checking and buying real estate?

sscritic
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Joined: Thu Sep 06, 2007 8:36 am

Re: Down payment transaction from VG Prime?

Post by sscritic » Sat Apr 12, 2008 12:57 am

Betelgeuse wrote:So if it goes through, my lender and realtor have mentioned having a certified or cashiers check for the down payment at closing. My cash reserves for this are in VG Prime MM, and I have a checking enabled on it.

Is using a check from my prime account koshier? Or do I need to move my funds somewhere else to get a cashiers check?


A check you write from your Prime MM is not a certified check nor is it cashier's check. You will need to transfer your funds to your bank which can issue a cashier's check. Talk to your bank about how many days in advance the money needs to reach them. You could use a wire transfer and pay the fees to speed things up, but they will probably be more than the interest you will lose for having your money in the bank instead of Prime MM for a few days.

AlohaJoe
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Re: Down payment transaction from VG Prime?

Post by AlohaJoe » Sat Apr 12, 2008 1:06 am

sscritic wrote:You could use a wire transfer and pay the fees to speed things up, but they will probably be more than the interest you will lose for having your money in the bank instead of Prime MM for a few days.


Vanguard doesn't charge wire fees for amounts greater than $5,000.

Your bank may charge a fee to receive the wire transfer.

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Abciximab
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Post by Abciximab » Sat Apr 12, 2008 12:33 pm

I just went though this yesterday when we signed the title for our new house. The company would only accept wire transfers or cashier's check. I initiated the transfer from Vanguard on Tuesday morning, but the bank didn't clear the funds for use until Friday. So get funds moving sooner rather than later or you could get stuck.
An investment in knowledge always pays the best interest - Benjamin Franklin

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