How Do You Get Paid When Selling Your House? (Find Out Here)

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Homeowners selling their properties often get paid after they complete the closing processes. However, how fast you get paid or receive the money in your account depends on various factors, including the location of your property. In most states, property sellers receive their money on the closing date. Some sellers receive their payments within 24 hours, especially if cash home buyers buy the property.

However, sellers in some states, known as dry funding states, should wait a while after the closing date to receive their payments. This period allows lenders to review the buyers’ loan application documents. Read on to understand when and how you will get paid after selling your home.

What Should Happen Before Closing Day?

Before the highly anticipated closing date, the following should have been completed for payments to be made smoothly after the selling process:

  • The buyer should have deposited earnest money in the escrow – Earnest money is a cash deposit of approximately 1% to 3% of the selling price. The deposit shows that the seller is serious about making the purchase.
  • A search of property records – The title company should search property records to ensure the seller rightfully owns the property. The records should provide proof you are the sole owner, liens on the property, unpaid taxes, outstanding mortgage, and any other issue that can prevent the sale.
  • Scheduled home inspection – A home inspection before the closing process is crucial. The buyer should hire a licensed inspector to evaluate the property’s condition. The inspection report should highlight the house’s condition, repairs that require immediate attention, and those that can wait. The buyer can request for important repairs to be done.
  • The final walkthrough – This is the final step of the pre-closing process that occurs after the seller moves out. The buyer has an opportunity to inspect the empty property and evaluate if requested repairs were made.

How the Closing Process Works for the Seller

After accepting the offer, sellers should prepare for the closing process. The closing process varies, primarily depending on the prevailing real estate market and how soon the prospective buyer gets approved for financing.

Most closing steps are mortgage lender requirements. You can skip and close the sale sooner if the buyer pays for the property in cash or other alternative funding, such as hard money loans. During the closing date, the seller should meet with the buyer and closing agent to sign the following documents:

  • Seller’s closing disclosure – A document that shows the selling price, closing costs, mortgage payment, and the amount the seller takes home from the property sale.
  • Title affidavit – A legal document that proves the seller is the rightful owner of the property. It also discloses if the property has pending legal issues.
  • Deed – A document that transfers property ownership to the new owner.
  •  Bill of sale – highlights other personal property included in the sale, such as kitchen appliances and furniture.
  • Loan payoff – Statement from the lender showing the final mortgage payment and prepayment penalties.
  • Statement of closing costs – A disclosure document showing the seller is aware of the cost of selling the property.

When Does the Seller Get Paid After Closing Date?

How soon you receive payments after closing depends on whether you live in wet funding or dry funding states. Your preferred payment method, be it a check or wire transfer, also affects how long it takes.

What Is Wet Funding?

Wet funding means the mortgage lender should avail the purchase money immediately after the buyer signs the loan application documents – while the ink on the document is still wet. This practice is observed in 41 U.S states. If your state observes wet funding laws, you’ll receive payment for the sold property on the closing date.

What Is Dry Funding?

Dry funding is only practiced in nine U.S states. It gives mortgage lenders time to verify the signed loan documents before approving the loan. As such, dry funding has a gap between the closing and payment dates.

How Long Do Sellers Wait in Dry Funding States for Payment?

It takes approximately four days after the closing date for mortgage lenders in dry funding states to pay sellers. This gap is not favorable for sellers who intend to purchase new homes immediately after the sale. You should consider this lag gap before setting a closing date for another property. Alternatively, you can make a contingent offer if you haven’t submitted your offer on the new property.

How Do You Get Paid When Selling Your Home?

Property sellers can receive their payments in two ways:

Getting Paid by Wire Transfer

Most buyers and lenders widely use wire transfers. If you prefer this option, the payment will reflect on your bank account 24 to 48 hours after closing. Most banks process wire transfers immediately as received. However, you can face challenges if the bank has a daily cutoff time. If your money reflects after the cutoff time, the payment won’t be processed until the following business day. Keep in mind that wire fraud cases have significantly affected the real estate industry in recent years. You should use secure emails or encrypt banking information to avoid falling prey.

Getting Paid By Check

Check payments are usually handed over during the closing day. As such, sellers get the satisfaction of walking away with their money after selling the house. However, this doesn’t mean you’ll access the funds immediately. You should bank the check and wait for the bank to transfer the money into your account. Banks can place funds of more than $5,525 on hold for seven days. These delays make paper checks tricky.


You should evaluate several factors to determine how and when you will receive payment after selling your property. Except for cash buyers who pay for properties immediately, sellers can wait several days to receive payments after closing. While you’ll receive payments faster in wet funding states, your bank determines how soon you can access the money.

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